Computer Identity Authentication for NTLM is used.

From Windows 7 Security Technical Implementation Guide

Part of Computer Identity Authentication for NTLM

Associated with IA controls: ECSC-1

SV-25274r1_rule Computer Identity Authentication for NTLM is used.

Vulnerability discussion

This setting ensures that services using Local System that use negotiate when reverting to NTLM authentication will use the computer identity vs. anonymously.

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Configure the policy value for “Network Security: Allow Local System to use computer identity for NTLM” to “Enabled”.

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