Thank you for posting your question on Microsoft community.
I would like to know some information about the issue so that we could help you better.
1. What is the reason for performing system restore?
2. Does your computer boot to the desktop?
3. Are you trying to restore Windows from Windows recovery environment?
I appreciate you for providing details about the issue and your efforts towards resolving it.
This issue may occur if the service required by system restore to work properly is not running.
If your computer boots to the desktop, I would suggest you to try following methods and check if it helps.
Please make sure that the volume shadow copy service is
running and set as automatic. Please follow these steps.
a. Click Start, type services.msc in the start search box and press Enter.
b. Right click "Volume Shadow Copy" and click properties.
c. Please make sure that startup type is automatic and
service status is running.
d. If not, select startup type as automatic and click "Start".
e. Click apply and ok.
If it does not help, then run bootrec commands in the command prompt from Windows recovery environment.
Refer this article: Use Bootrec.exe in the Windows RE to troubleshoot startup issues https://support.microsoft.com/en-us/kb/927392
If you still want to restore factory settings, then please make sure that you have a backup of your data and files.
Please keep us updated on the status of the issue.
Note: Serious problems might occur if you modify the registry incorrectly. Therefore, make sure that you follow these steps carefully. For added protection, back up the registry before you modify it. Then, you can restore the registry if a problem occurs.
For more information about how to back up and restore the registry, click the following article number to view the article in the Microsoft Knowledge Base: https://support.microsoft.com/en-us/kb/322756
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Last updated: April 10, 2018