I had SCDPM 2012 R2 running on Windows Server 2012 R2 with SQL Server 2012. I followed the instructions here to upgrade to SCDPM 2016 UR 2 running on Windows Server 2016 with SQL Server 2016.
Everything was working fine until the final step to upgrade from Windows Server 2012 R2 to Windows Server 2016. Following this the DPM services failed to start and the Event Log was full of errors like the below:
ATL Failure in Initializing Security of msdpm
Microsoft.Internal.EnterpriseStorage.Dls.Utils.DlsException: exception —> System.Runtime.InteropServices.COMException: Server execution failed (Exception from HRESULT: 0x80080005 (CO_E_SERVER_EXEC_FAILURE))
The resolution was to change the Netlogon service from Manual to Automatic. Following this change and a reboot everything started working again.