The User Profile Service Failed The Logon

In this case, there was a Windows 8.1 workstation with corrupted Default profile. All domain users with or without previously created profile on that machine were unable to logon with following error message:
"The User Profile Service failed the logon. User profile cannot be loaded."
I've logged on to the workstation with local admin account, and opened the Application Event Log, a warning event with id 1509 was logged, from source Microsoft-Windows-User Profiles General with following description:
Windows cannot copy file \\?\C:\Users\Default\AppData\Local\Microsoft\Windows\WER to location \\?\C:\Users\TEMP\AppData\Local\Microsoft\Windows\WER. This error may be caused by network problems or insufficient security rights.

In order to resolve the issue, I've forced permission propagation to all child objects on C:\users\Default:

After successful permission replacement on all child object of C:\Users\Default, domain users were able to successfully log on to the workstation, again.


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