Updated To 8.1 - User Profile Missing

This desktop computer came with Windows 8 pre-installed and was updated to 8.1 from the MS free download around a year ago. While updates were automatically downloaded, the settings were not for auto updates. I attempted to install updates a few months ago but got many failures (as did many others I read about) and after installing KB2919355 the desktop was messed up and the missing profile problem was evident. Did a system restore which fixed everything and it has been stable ever since - with no updates installed.

Today after several attempts (and hours) I finally got all the Windows updates installed without failures, However, when any application icon shortcut is selected, the "Missing Profile" message comes up. I am able to start the program from the Program Files folder using the executable file and once started all appears normal. Tried re-creating the shortcuts on the desktop but get the same error message. This applies to Firefox, Thunderbird, Word, etc. Also notice that the pressing the windows key + X does not work but windows + C works as well as windows + R. Those keys and icons all work from the administrator logon so the problem seems isolated to the default user.

After researching the problem I created a new user (while under admin privileges) but no profile was created. When attempting to logon to the new user, the message "The User Profile Service service failed the sign-in. User profile cannot be loaded." Checked the User folder on the C: drive and the new user was not there.

So, before I give up and re-install windows 8.0 &8.1 ( and have to re-load a bunch of programs).

System Info Utility version 1.0.0.2
OS Version: Microsoft Windows 8.1, 64 bit
Processor: Intel(R) Core(TM) i5-3330 CPU @ 3.00GHz, Intel64 Family 6 Model 58 Stepping 9
Processor Count: 4
RAM: 6026 Mb
Graphics Card: Intel(R) HD Graphics, -1984 Mb
Hard Drives: C: Total - 937328 MB, Free - 666832 MB;
Motherboard: Gateway, IPISB-VR
Antivirus: Windows Defender, Disabled