GUYS,
my issue is resolved by typing the following commands in command prompt
1. Clear IPSec settings and software restriction settings
a. reg delete HKLM\software\policies\microsoft /f
b. regedit /s "c:\policies.reg"
(where c:\policies.reg is the exported from HKLM\software\policies\microsoft to target machine)
2. Rest GPO settings to their defaults :
secedit /configure /db reset /cfg "c:\windows\security\templates\setup security.inf" /overwrite
3. Delete the registry.pol file if it exists:
del c:\windows\system32\grouppolicy\machine\registry.pol
The group policy updated with the below command.
gpupdate \force