Have run across it hundreds and hundreds of times over the years. Typically it's on an older computer, with a hard drive beginning to get worn and tattered. Other times, corruption of <something> in the profile.
99% of the time you can get around this by doing the registry edit
HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows NT\CurrentVersion\ProfileList
Finding the profile, comparing the path, swapping last good one with the .BAK on a rename. There's a kajillion guides found via Google-fu with pictures on how to do this.
Once done ensure profile is clean from malware, empty the various temp folders within the directory, and I typically suspect the hard drive and clone it to a new one.
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