Ultrasound is attempting to create a hidden propagation file whose name resembles UltrasoundPropagationFile_{2696CDC3-17AA-4206-8F45-27BF61242B8D} in a hidden directory called UltrasoundPropagationFiles. <SERVER_NAME> located in the SYSVOL\domain folder (for domain controllers) or directly under the replica tree root (for DFS) but failed.
Check local system permissions to the folder as well as other physical causes, such as disk space issues.