Can you post the contents of the file config.nt on C:\Windows or C:\Windows\System32 folder?
The subsystem 16bits is not that usual to be messed nowadays.
i know a similar message about VDD failure from Sentinel drivers… there was a problem with virtual driver for ms-dos “emulated” subsystem…
your current VDD is defined here [HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Control\VirtualDeviceDrivers]… i’m not sure, but i think you must be an admin to have a permission to edit/delete the VDD entry under this reg key…