Event ID 502 Error appears in the Application Log, in the event viewer. This event usually happens in conjunction with abnormal logon time, and is closely related to the “Network directories to sync at Logon/Logoff time only”.
This policy will make the AppData folder available offline for users
This is the most common scenario which triggers this event: These settings are usually configured in order to help applications that do not handle online folders properly, and need to use offline folders in order to function properly.
This issue happens when the “Network directories to sync at Logon/Logoff time only” is applied before the folder redirection policy has been applied. Once the “Network directories to sync at Logon/Logoff time only” is applied on the computer, it makes the folder available offline and when folder redirection tries to create the folder link, it fails due to the “Offline Files” mechanism suspending the share and it is no longer available. This is a known bug and Microsoft has published a hotfix for it.
In order to solve the issue, try to install the Microsoft hotfix for the issue.
To resolve this issue in Windows 8.1 and Windows Server 2012 R2, install update 2919355.
To resolve this issue in Windows 7 and Windows Server 2008 R2, refer to the following KB on Microsoft’s web site.