Unable to access sysvol using path \\domain.local\sysvol

Hi,

We found that our newly configured workstations were unable to read/apply GPOs. Upon checking, we are able to access the path \\domain.local. However, when trying to open sysvol folder (or any other shared folder on the domain controller), we receive the following error:

We cannot also access the folders when using domain netbios name. Strangely enough, when using IP address or DC name, we can successfully map the sysvol folder.

Have also tried running DCdiag and the test NCSecDesc fails with error:

Hope anyone can shed some light on what went wrong.

Thank you.