Had the same issue today. I added the user to:
Administrative Tools -> Local Security Policy -> Local Policies -> User Rights Assignment -> Log on as a batch job
But was still getting the error. I found this post, and it turns out there's also this setting that I had to remove the user from (not sure how it got in there):
Administrative Tools -> Local Security Policy -> Local Policies -> User Rights Assignment -> Deny log on as a batch job
So just be aware that you may need to check both policies for the user.