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The server process could not be started

I was getting following issues in Windows 7

Attempts to start Explorer causes this error message:
EXPLORER.EXE
The server process could not be started because the configured identity is incorrect. Check the username and password.

-- Attempt to start Control Panel results in the following dialog box:
Window title: {some GUID}
Message:
{some GUID}
The server process could not be started because the configured identity is incorrect. Check the username and password.


The resolution was simply to restart the OS - windows installed and configured some updates post which the error disappeared
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