Customer has one Win7Pro x64 wkstn that gives

when we try to create recovery media. AVG Free is disabled.
Looking at that location with Windows Explorer shows

Can't delete it until we remove the S-1-5-5-0-106558 user account associated with it, but it gets re-created when we re-run the Create Recovery Media.
Ideas appreciated. This wkstn did successfully create recovery media several months ago with earlier version of VEB.