The issue is caused by offline files incorrectly setting network shared drive as offline file.
To fix it, do the following:
1. Open up registry editor (regedit)
2. Browse to HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Services\Csc
3. Add a new key (folder) called Parameters (it may already be there)
4. Under HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Services\Csc\Parameters, add a new DWORD called FormatDatabase and set its value to 1
5. reboot the PC.