Event ID 7000 The Diagnostic Service Host service failed to start !

The Diagnostic Service Host service failed to start due to the following error:
A privilege that the service requires to function properly does not exist in the service account configuration. You may use the Services Microsoft Management Console (MMC) snap-in (services.msc) and the Local Security Settings MMC snap-in (secpol.msc) to view the service configuration and the account configuration.

Today at my company, every domain user was receiving above error in  there Event logs / SYSTEM section.
To sort this issue i did following

1. Login to Domain Controller PC
2. Open Group policy editor (or run gpedit.msc from RUN) and edit default domain policy (or any other custom policy you may have other then default)
3. Goto Computer or USER  Configuration -> Policies -> Windows Settings -> Security Settings -> Local Policies -> User Rights Assignment -> Profile system performance

There you may see only ADMINISTRATOR user added by default, now add following users
LOCAL SERVICE
NT Service\WdiServiceHost
Now open CMD and issue following command to force GPUDPATE.

gpupdate /force

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At client end, clear the logs, and reboot system. After rebooting check Event Viewer and you wont see the error again. [I waited about 15 minutes before rebooting client]