After you set up Folder Redirection via Group Policy, events 1000 and 101 are logged in the Application event log:

Event Type: Error
Error Event Source: Userenv
Event Category: None
Event ID: 1000
Date: Date
Time: Time
User: Nt Authority\System
Computer: Computername
Description: The Group Policy client-side extension Folder Redirection was passed flags (0) and returned a failure status code of (1307).
Event Type: Error
Event Source: Folder Redirection
Event Category: None Event ID: 101
Date: Date
Time: Time
User: Domain\User
Computer: Computername
Description: Failed to perform redirection of folder Desktop. The new directories for the redirected folder could not be created. The folder is configured to be redirected to \\Computername\Redirected shared folder, the final expanded path was \\Computername\Redirected shared folder. The following error occurred: This security ID may not be assigned as the owner of this object.
When you set up Folder Redirection, you can set it as Basic, Advanced, or None. If you selected Basic on the Target tab and selected Grant the user exclusive rights to the folder name under Settings, Folder Redirection will fail with the above events.

To fix the problem:

1. Load the appropriate Group Policy.

2. Navigate to User Configuration / Windows Setting / Folder Redirection.

3. Right-click the appropriate Folder Redirection component and press Properties.

4. Select the Basic setting on the Target tab and clear the Grant the user exclusive rights to the folder name under Settings.

5. Press Apply and OK.