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Server 2012 r2 hangs after reboot following SharePoint 2013 Installation

This was an interesting issue.  There were hundreds of moving parts that hit us at once.  Essentially the issue was that after Installing SharePoint, all our Server 2012 R2 servers would lock up saying “Applying User Settings” or “Applying Computer Settings”.  It would take considerable time (sometime days) for a VM to start.  Eventually the error would return, and there didn’t seem to be any rhyme or reason for the failure.  We opened an express MS ticket, and found the following information.  This seemed to be a 2008 server issue, but it appears it leaked into 2012!  So here is the fix!  At first we looked for NIC Driver problems, and Permissions.  But here is the fix, hope it saves someone some time.

Information on HTTPS Registry Settings: https://support.microsoft.com/en-us/kb/820129
Hotfix https://support.microsoft.com/en-us/kb/2379016 also includes manual fix.

Computer stops responding and appears to hang at the "Applying User Settings" or "Applying Computer Settings" stage of the logon process.

Note The following method can be used in Windows Safe Mode when you are not able to log on successfully to install the hotfix or fixit.

To work around the issue without installing the hotfix, create a DependOnService registry key to modify the behavior of HTTP.sys. This makes HTTP.sys depend on crytosvc service to be started first. To do this, follow these steps:

1.      Click StartStart button, type regedit in the Start Search box, and then press ENTER.  If you are prompted for an administrator password or for confirmation, type the password, or provide confirmation.
2.      Locate and then click the following registry subkey:
HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Services\HTTP
3.      On the Edit menu, point to New, and then click Multi-string Value.
4.      Type DependOnService, and then press ENTER.
5.      Right-click DependOnService, and then click Modify.
6.      In the Value data box, type CRYPTSVC, and then click OK. 
7.      Exit Registry Editor.
8.      Restart the computer.

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