SQL Server Services : Access is denied ( Event ID : 7000 )

Hello Everyone, A week ago I was working on fresh MS SQL Server 2012 SP3 Installation on newly built Microsoft Windows Server 2012 Standard on a VMware virtual machine. I installed default Instance with SQL Services running with "Local System", an Installation went smooth. however once Installation completed I was trying to run the SQL Services from Domain account (i.e. Domain\User) the services were stopped and there were errors in the OS system log:

Log Name:      System
Source:        Service Control Manager
Date:          10/11/2016 12:10:01 PM
Event ID:      7000
Task Category: None
Level:         Error
Keywords:      Classic
User:          N/A
Computer:      ******
Description:
The SQL Server (MSSQLSERVER) service failed to start due to the following error: 
Access is denied.

Case - I

I also tried to run SQL services from SQL Server Configuration Manager by creating local server user but again no success, not able to start the services getting same error.
Then I called my most technical friend Google, but unfortunately this didn't get me very far; it took a bit more digging. I got few more errors from the Application log, the System log, and the bootstrap summary (%ProgramFiles%\Microsoft SQL Server\110\Setup Bootstrap\Log\Summary.txt):

- Attempted to perform an unauthorized operation
- error: 40 - Could not open a connection to SQL Server

I was googling more detailed error logs from the bootstrap summary log that helps me to find the right path towards the solution.

Then I got to know that When you build MS Windows Server 2012 on VMware we need to disable the HotAdd/HotPlug capability.
This was a difficult one to track down, but thanks to MSDN forums and the community I now have a new item on my build checklist.

Case - II

Also there is the same solution for SQL Server failing to install if the one of the folders was set to a volume other than C: – the installation logs and Process Monitor traces pointed to “access denied” but it was not clear why this should be failing.

It turns out that the problem is specific to Windows Server 2012 when running under VMWare with the hot-plug capability enabled – under Hyper-V, VirtualBox or on physical hardware the problem does not occur.