UiRobot.exe error while running in interactive mode

I am trying to launch the bot in interactive mode using following command in the command line. C:\Program Files (x86)\UiPath\Studio>UiRobot.exe -f “C:\Bot\test1\Main.xaml” --monitor

Its logging me off, but not executing the work flow as expected. Giving following error

test1 System.Exception: Executor start process failed, reason System.Runtime.Int
eropServices.COMException (0x8007001F): A device attached to the system is not f
unctioning. (Exception from HRESULT: 0x8007001F)
at UiPath.UiSystemClass.OpenInteractiveWindowsSession(String bstrUser, String
bstrPassword, UiOpenSessionFlags nFlags, String bstrApplication, String bstrApp
Arguments, Int32 nDelayMs, Int32 userToken, UiGenericOptions options)
at UiPath.Core.Setup.OpenInteractiveWindowsSession(String username, String pa
ssword, OpenSessionFlags flags, String application, String arguments, Int32 user
Token, Int32 preferredWidth, Int32 preferredHeight, Int32 preferredDepth, Boolea
n fontSmoothing)
at UiPath.Service.Impl.Executor.StartProcessInSession(Guid executorInstanceId
, String username, String password, SettingsDictionary execSettings, IntPtr user
at UiPath.Service.Impl.Executor.<>c__DisplayClass17_1.<b__0>d.MoveNext

Logon as batch job is set for this user. Windows OS is Windows 2012 R2. Bot version 2018.2.2

This works fine in another VM but not in this particular VM. Any thoughts or suggestions appreciated.