CreateVirtualDirectory: Failed to update virtual directory SMS_DP_SMSPKG$

ERROR CreateVirtualDirectory: Failed to update virtual directory SMS_DP_SMSPKG$. error = IDispatch error #3603

Cannot set the current Drizzle Role status for the DP.

DP thread with ID 6908 failed to process DP action

SMS_DISTRIBUTION_MANAGER will generate above errors in distmgr.log and there will be no errors in PkgXferMgr.log on the primary site server.

On offending DP, there will be no entries to the offending package in smsdpprov.log

The error in distmgr.log relates to virtual directories / IIS. Review the installed pre-requisites of IIS on the DP, most likely the DP will be missing IIS 6 WMI Compatibility feature.
If it is not installed, install the IIS 6 WMI Compatibility feature.

If it is already installed, remove the feature and re-add it then re-distribute the package.

This should the fix the issue and the package distribution will complete successfully.