One known cause is when permissions are attempting to be set to a target machine that is formatted with FAT32 instead of NTFS. Permissions cannot be set to a file residing on a FAT partition.
Another known cause is when there are explicit Denies set on the object that are prohibiting the user or the script from changing permissions.
A third cause is that Inheritance may be set in a manner that requires it to be changed.
In most cases, issue is due to incompatible permissions (apply NTFS permissions to FAT for example). In the cases that you can make changes to a permissions element, change the “File/Registry Permissions” element settings from "Do not modify this objects inheritance" to "Allow this object to inherit from parent".
Note: If you received this return code on an object other than those listed above, please contact Quest Software Support.