The File Replication Service may be preventing the computer %1 from becoming a domain controller while the system volume ...

The File Replication Service may be preventing the computer %1 from becoming a domain controller while the system volume is being initialized with data from another domain controller and then shared as SYSVOL. 
 
Type "net share" to check for the SYSVOL share. The File Replication Service has stopped preventing the computer from becoming a domain controller once the SYSVOL share appears. 
 
The initialization of the system volume can take some time. The time is dependent on the amount of data in the system volume, the availability of other domain controllers, and the replication interval between domain controllers.