After much work and headache I have discovered the issue. The problems lies with our local security policy, in specific the Bypass Traverse Checking policy. The Everyone group was removed from this policy on all of our images and once it was replaced the issue is resolved. We have applied a domain level GPO to override existing policies and all seems to be working. McAfee is also issuing a KB article regarding the issue, but I am not sure what the listed solution will be.
No, I did open a case with Gold Support but they were unable to assist. I believe the problem started when the ePO admin switched from pushing updates from ePO to SMS, but I am not positive that was the start of the problem. I also opened a case with Microsoft, because of the use of SMS, and they were able to help some.
I first found that defaulting the local security policy fixed it. Then I found that defaulting them, and re-adding our documented policies fixed it as well which led me to believe it was a rogue, undocumented policy. So I compared policies on fixed and broken machines and noticed the Bypass Traverse Checking. Ive verified that simply adding Everyone to that policy works.