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Hello Martin Fitzsimons
Thank you for posting your query on Microsoft Q&A platform.
S‑1‑5‑83‑0 is the well‑known SID for the built‑in group NT VIRTUAL MACHINE\Virtual Machines added by Windows when the Hyper‑V role/features are present. On Hyper‑V systems, this group is purposely granted the Create symbolic links right, so virtual machines operate correctly. Microsoft and STIG guidance explicitly state that having NT VIRTUAL MACHINE\Virtual Machines (S‑1‑5‑83‑0) on Hyper‑V systems is not a finding (i.e., acceptable).
The reason Azure Policy flags non‑compliance is that the built‑in baseline/initiative compares with “EQUALS” to Administrators only, and its default parameters do not expose a switch to include the extra SID in that rule.
As a resolution:
Add a Policy Exemption (fastest, recommended for Hyper‑V hosts):
- In Azure Policy → Compliance, open the initiative/policy result for Create symbolic links.
- Click Add exemption at the appropriate scope (subscription/resource group/VM).
- Justification: “Hyper‑V host—
S‑1‑5‑83‑0(NT VIRTUAL MACHINE\Virtual Machines) is permitted forSeCreateSymbolicLinkPrivilegeper Microsoft” This keeps your built‑in assignment intact and prevents false positives. (Exemptions are a supported mechanism in Azure Policy.)
Customize the Machine Configuration baseline (if you use the new Settings Picker):
- Go to Azure Portal → Policy → Machine Configuration → Definitions.
- Select your Windows baseline and click Modify settings.
- Locate User Rights Assignment → Create symbolic links and adjust expected principals or change the comparison to a membership‑style evaluation that includes
NT VIRTUAL MACHINE\Virtual Machines. - Review + download the customized JSON and assign the baseline using the uploaded parameters.
Reference: https://learn.microsoft.com/en-us/azure/governance/machine-configuration/how-to/assign-security-baselines/deploy-a-baseline-policy-assignment and
https://learn.microsoft.com/en-us/azure/governance/machine-configuration/how-to/assign-built-in-policies
If you need any further assistance, please feel free to reach out.
Thanks,
Suchitra.