I had to make a new user on a Windows 7 workstation machine, and the simple create user procedure failed miserably,  I thought maybe there are some permission problems.

The user created with GUI ( either control panel or MMC)  or from the console with the "net user command", spawned multiple 'profile' and 'temp' folders in the USERS folder, didn't create the necessary registry entries.

And if you logged in with any of the created users you got a perpetual "preparing desktop" and when logged in you got an information notice that announced you: "you have been logged on with the default system profile".

One thing that I didn't bother to look at is the logs, and that should be the first thing obvious, I did a lot of futile things like recreating the default user folder, reset the default permissions, and other tricks that usually repair any problem with creating a new user.  After I saw that most of the things still didn't resolve the issue, I looked at the logs. Nevertheless to say that the problem was that the new Avast Antivirus(17.2.*), created a file called remotecache.zip, that was locked and set specifically unreadable for everyone even system and administrator users. What was even more frustrating was the fact that this file still was undeletable even when the antivirus service was turned off.  So I removed the AV and retried and voila, newly created profiles were fine.

Now, I don't know why avast puts a file in a template folder that is only used for creating new users, AV's should never put a file there. And also I don't know why the creating process of new users in W7 is so illogic.

Because if Windows can not copy a file from the default users template folder, it will just crash instead of skipping that file which was probably useless anyway. If the logic behind was that is better to abort the whole process for any file at least it would have been better if there was an actual check if that file is really important, and that could have been implemented very easily.