The following resolution steps can be taken should you receive this error.
- Changed DNS on local network adaptor – Enter IP of another DNS server (Don’t put local IP as DNS).
- Check entries in DNS server and remove A records of server you are trying to promote (Might have legacy records if it was a DC before).
- Run dcpromo while Netlogon service is stopped
- Import registry setting from working DC for netlogon
- Rename netlogon files and restart netlogon service
- Ensure time is correct – Compare to working DC’s
- Stopped any services that might be using the Netlogon service
- Uninstall DNS from the server you are trying to promote
In my case it was a DNS value missing in registry at below path which was not allowing to stop netlogon services. Under DNSClient key create multistring named “SearchList” with value “your domain name”
HKLM\software\Policies\Microsoft\WindowsNT\DNSClient
After creating above value in registry it allowed to stop nelogon services and installation proceed further. Procmon tool was helpful to trace this.