Hello,
Sorry for the very long time without any feedback, I was testing a few things. I realized this event happened after I uninstalled OneDrive, so I tried re-installing the program and seeing if it fixed it. To my surprise, this seemed to have "fixed" it - I went for 14 days without any "Audit Failure" events and was even going to share my "solution" to the problem here. However, yesterday, the event started popping up again and it has happened four times by the time I'm writing this. The only "different" thing I did yesterday was installing GlassWire and activating Network discovery, and so I tried uninstalling it completely and deactivating Network discovery to see if the login failure event would stop happening. Unfortunately, it didn't fix my problem. I thought I could try a System Restore to a point before I had installed GlassWire again, but my one remaining restore point from 10 days ago was deleted out of nowhere (my Windows always does this - not sure if this is normal, I've even changed the disk space usage for system restore points to the maximum amount a few months ago but the Restore Points just keep disappearing some days after the system creates them; this is not a recent problem and has always happened on my computer, so I don't think it's caused by a virus or anything of the sort).
I've read on a few forum pages that this event might pop up when the system tries to access "shared" folders with the wrong permissions. To my knowledge, I don't have any shared folders, and I don't think GlassWire or OneDrive create shared folders (at least, I can't find any).
I've considered uninstalling Avast to test your theory that Avast might be causing this, but I'm starting to think it might not have anything to do with Avast since the event didn't happen for two weeks, and Avast was installed this whole time. I feel like I've read pretty much everything about this event and I'm running out of things to test. My computer seems to be running perfectly fine and everything seems to work normally. Is this worth looking into? You've mentioned that errors in the Event Viewer log don't need to be dealt with unless they're causing performance problems, but this event isn't logged as an "Error", it's a "Security Audit Failure", which sounds a bit ominous to me. I did find a few people with the same problem as me (though it seems to be something a bit rare) and no one seems to be able to explain this event very well. I guess I just want to know if this is a real security concern or if I should just try to ignore it. Sorry if I'm being repetitive, I'm mostly just trying to understand how my machine works and if everything is in order.