The issue here is that users from site under the top level site collection which has unique permissions suddenly they are not able to create subsites anymore although they are members of site owners group and have full control rights in the site.
So far, i found out that the issue is occurring when using one specific template, which was site saved as template.
the template inherits the permissions from the site, and the site owners were able to create sites until few days ago when they told me that access denied message is appearing when creating new subsites.
I made a test account and gave him site owners rights to try and invoke the error and indeed it happened and found this is the uls logs:
Applying web template '{09D700D6-0F3A-4437-BB1C-BC12EC4D48FD}#ProjectSiteTemplate_v8' on web url 'http://projects.coatings.com/GPB/radix2' 4232ee49-1b32-425b-a706-32574ead39b0
10/07/2016 09:09:05.14 w3wp.exe (0x27A4) 0x1CF0 SharePoint Foundation
General 85m7 Medium Actual web template
to apply to Url 'http://projects.coatings.com/GPB/radix2' is 'STS#0' 4232ee49-1b32-425b-a706-32574ead39b0
10/07/2016 09:09:05.16 w3wp.exe (0x27A4) 0x1CF0 SharePoint Foundation
General cf0v Medium Setting UIVersionConfigurationEnabled
to 'False' on web url 'http://projects.coatings.com/GPB/radix2' 4232ee49-1b32-425b-a706-32574ead39b0
10/07/2016 09:09:05.17 w3wp.exe (0x27A4) 0x1CF0 SharePoint Foundation
General 72h7 Medium Applying template
"STS#0" to web at URL "http://projects.coatings.com/GPB/radix2". 4232ee49-1b32-425b-a706-32574ead39b0
10/07/2016 09:09:05.38 w3wp.exe (0x27A4) 0x1CF0 SharePoint Foundation
General 8l1c Medium Preparing 32 features
for activation 4232ee49-1b32-425b-a706-32574ead39b0
10/07/2016 09:09:05.39 w3wp.exe (0x27A4) 0x1CF0 SharePoint Foundation
General 8l1d Medium Feature Activation:
Batch Activating Features at URL http://projects.coatings.com/GPB/radix2 'WikiPageHomePage' (ID: '00bfea71-d8fe-4fec-8dad-01c19a6e4053'), 'WebPageLibrary' (ID: '00bfea71-c796-4402-9f2f-0eb9a6e71b18'), 'BizAppsListTemplates' (ID: '065c78be-5231-477e-a972-14177cc5b3c7'),
'IssuesList' (ID: '00bfea71-5932-4f9c-ad71-1557e5751100'), 'MetaDataNav' (ID: '7201d6a4-a5d3-49a1-8c19-19c4bac6e668'), 'PremiumWeb' (ID: '0806d127-06e6-447a-980e-2e90b03101b8'), 'WorkflowHistoryList' (ID: '00bfea71-4ea5-48d4-a4ad-305cf7030140'), 'ReportListTemplate'
(ID: '2510d73f-7109-4ccc-8a1c-314894deeb3a'), 'NoCodeWorkflowLibrary' (ID: '00bfea71-f600-43f6-a895-40c0de7b0117'), 'SurveysList' (ID: '00bfea71-eb8a-40b1-80c7-506be7590102'), 'RelatedLinksScopeSettingsLink' (ID: 'e8734bb6-be8e-48a1-b036-5a40f...
4232ee49-1b32-425b-a706-32574ead39b0
10/07/2016 09:09:05.39* w3wp.exe (0x27A4) 0x1CF0 SharePoint Foundation
General 8l1d Medium ...f0b8a81'), 'GridList'
(ID: '00bfea71-3a1d-41d3-a0ee-651d11570120'), 'GanttTasksList' (ID: '00bfea71-513d-4ca0-96c2-6a47775c0119'), 'SlideLibrary' (ID: '0be49fe9-9bc9-409d-abf9-702753bd878d'), 'LinksList' (ID: '00bfea71-2062-426c-90bf-714c59600103'), 'MobilityRedirect' (ID: 'f41cc668-37e5-4743-b4a8-74d1db3fd8a4'),
'workflowProcessList' (ID: '00bfea71-2d77-4a75-9fca-76516689e21a'), 'TasksList' (ID: '00bfea71-a83e-497e-9ba0-7a5c597d0107'), 'TeamCollab' (ID: '00bfea71-4ea5-48d4-a4ad-7ea5c011abe5'), 'BaseWeb' (ID: '99fe402e-89a0-45aa-9163-85342e865dc8'), 'AnnouncementsList'
(ID: '00bfea71-d1ce-42de-9c63-a44004ce0104'), 'ObaSimpleSolution' (ID: 'd250636f-0a26-4019-8425-a5232d592c01'), 'PictureLibrary' (ID: '00bfea71-52d4-45b3-b544-b1c71b620109'), 'ContactsList' (ID: '00bfea71-7e6d-4186-9ba8-c047... 4232ee49-1b32-425b-a706-32574ead39b0
10/07/2016 09:09:05.39* w3wp.exe (0x27A4) 0x1CF0 SharePoint Foundation
General 8l1d Medium ...ac750105'), 'CustomList'
(ID: '00bfea71-de22-43b2-a848-c05709900100'), 'DocumentLibrary' (ID: '00bfea71-e717-4e80-aa17-d0c71b360101'), 'DiscussionsList' (ID: '00bfea71-6a49-43fa-b535-d15c05500108'), 'DataSourceLibrary' (ID: '00bfea71-f381-423d-b9d1-da7a54c50110'), 'DataConnectionLibrary'
(ID: '00bfea71-dbd7-4f72-b8cb-da7ac0440130'), 'ExternalList' (ID: '00bfea71-9549-43f8-b978-e47e54a10600'), 'EventsList' (ID: '00bfea71-ec85-4903-972d-ebe475780106'), 'XmlFormLibrary' (ID: '00bfea71-1e1d-4562-b56a-f05371bb0115'), . 4232ee49-1b32-425b-a706-32574ead39b0
10/07/2016 09:09:05.47 w3wp.exe (0x27A4) 0x1CF0 SharePoint Foundation
General 8l1f Medium Feature Activation:
Batch Activated Features at URL http://projects.coatings.com/GPB/radix2 'WikiPageHomePage' (ID: '00bfea71-d8fe-4fec-8dad-01c19a6e4053'), 'WebPageLibrary' (ID: '00bfea71-c796-4402-9f2f-0eb9a6e71b18'), 'BizAppsListTemplates' (ID: '065c78be-5231-477e-a972-14177cc5b3c7'),
'IssuesList' (ID: '00bfea71-5932-4f9c-ad71-1557e5751100'), 'MetaDataNav' (ID: '7201d6a4-a5d3-49a1-8c19-19c4bac6e668'), 'PremiumWeb' (ID: '0806d127-06e6-447a-980e-2e90b03101b8'), 'WorkflowHistoryList' (ID: '00bfea71-4ea5-48d4-a4ad-305cf7030140'), 'ReportListTemplate'
(ID: '2510d73f-7109-4ccc-8a1c-314894deeb3a'), 'NoCodeWorkflowLibrary' (ID: '00bfea71-f600-43f6-a895-40c0de7b0117'), 'SurveysList' (ID: '00bfea71-eb8a-40b1-80c7-506be7590102'), 'RelatedLinksScopeSettingsLink' (ID: 'e8734bb6-be8e-48a1-b036-5a40ff...
4232ee49-1b32-425b-a706-32574ead39b0
10/07/2016 09:09:05.47* w3wp.exe (0x27A4) 0x1CF0 SharePoint Foundation
General 8l1f Medium ...0b8a81'), 'GridList'
(ID: '00bfea71-3a1d-41d3-a0ee-651d11570120'), 'GanttTasksList' (ID: '00bfea71-513d-4ca0-96c2-6a47775c0119'), 'SlideLibrary' (ID: '0be49fe9-9bc9-409d-abf9-702753bd878d'), 'LinksList' (ID: '00bfea71-2062-426c-90bf-714c59600103'), 'MobilityRedirect' (ID: 'f41cc668-37e5-4743-b4a8-74d1db3fd8a4'),
'workflowProcessList' (ID: '00bfea71-2d77-4a75-9fca-76516689e21a'), 'TasksList' (ID: '00bfea71-a83e-497e-9ba0-7a5c597d0107'), 'TeamCollab' (ID: '00bfea71-4ea5-48d4-a4ad-7ea5c011abe5'), 'BaseWeb' (ID: '99fe402e-89a0-45aa-9163-85342e865dc8'), 'AnnouncementsList'
(ID: '00bfea71-d1ce-42de-9c63-a44004ce0104'), 'ObaSimpleSolution' (ID: 'd250636f-0a26-4019-8425-a5232d592c01'), 'PictureLibrary' (ID: '00bfea71-52d4-45b3-b544-b1c71b620109'), 'ContactsList' (ID: '00bfea71-7e6d-4186-9ba8-c047a... 4232ee49-1b32-425b-a706-32574ead39b0
10/07/2016 09:09:05.47* w3wp.exe (0x27A4) 0x1CF0 SharePoint Foundation
General 8l1f Medium ...c750105'), 'CustomList'
(ID: '00bfea71-de22-43b2-a848-c05709900100'), 'DocumentLibrary' (ID: '00bfea71-e717-4e80-aa17-d0c71b360101'), 'DiscussionsList' (ID: '00bfea71-6a49-43fa-b535-d15c05500108'), 'DataSourceLibrary' (ID: '00bfea71-f381-423d-b9d1-da7a54c50110'), 'DataConnectionLibrary'
(ID: '00bfea71-dbd7-4f72-b8cb-da7ac0440130'), 'ExternalList' (ID: '00bfea71-9549-43f8-b978-e47e54a10600'), 'EventsList' (ID: '00bfea71-ec85-4903-972d-ebe475780106'), 'XmlFormLibrary' (ID: '00bfea71-1e1d-4562-b56a-f05371bb0115'), . 4232ee49-1b32-425b-a706-32574ead39b0
10/07/2016 09:09:05.47 w3wp.exe (0x27A4) 0x1CF0 SharePoint Foundation
General 88jb Medium Feature Activation:
Activating Feature 'ProjectSiteTemplate_v8ListInstances' (ID: '057bb171-2bf2-48de-b071-8de308132739') at URL http://projects.coatings.com/GPB/radix2. 4232ee49-1b32-425b-a706-32574ead39b0
10/07/2016 09:09:05.58 w3wp.exe (0x27A4) 0x1CF0 SharePoint Foundation
Template Cache g09v Medium Caching global fields. 4232ee49-1b32-425b-a706-32574ead39b0
10/07/2016 09:09:06.25 w3wp.exe (0x27A4) 0x1CF0 SharePoint Foundation
General 8kh7 High <nativehr>0x80070005</nativehr><nativestack></nativestack>Access
denied. 4232ee49-1b32-425b-a706-32574ead39b0
10/07/2016 09:09:06.41 w3wp.exe (0x27A4) 0x1CF0 SharePoint Foundation
Monitoring b4ly High Leaving Monitored Scope
(List Creation: _catalogs/masterpage). Execution Time=657.7911 4232ee49-1b32-425b-a706-32574ead39b0
10/07/2016 09:09:06.87 w3wp.exe (0x27A4) 0x1CF0 SharePoint Foundation
General 8e2s Medium Unknown SPRequest
error occurred. More information: 0x80070005 4232ee49-1b32-425b-a706-32574ead39b0
10/07/2016 09:09:06.92 w3wp.exe (0x27A4) 0x1CF0 SharePoint Foundation
Monitoring b4ly High Leaving Monitored Scope
(List Creation: Closure). Execution Time=504.8297 4232ee49-1b32-425b-a706-32574ead39b0
10/07/2016 09:09:06.92 w3wp.exe (0x27A4) 0x1CF0 SharePoint Foundation
Feature Infrastructure 889w High The element of type 'ListInstance' for feature 'ProjectSiteTemplate_v8ListInstances'
(id: 057bb171-2bf2-48de-b071-8de308132739) threw an exception during activation: Access is denied. (Exception from HRESULT: 0x80070005 (E_ACCESSDENIED)) 4232ee49-1b32-425b-a706-32574ead39b0
10/07/2016 09:09:06.94 w3wp.exe (0x27A4) 0x1CF0 SharePoint Foundation
General 72by High Feature
Activation: Threw an exception, attempting to roll back. Feature 'ProjectSiteTemplate_v8ListInstances' (ID: '057bb171-2bf2-48de-b071-8de308132739'). Exception: System.UnauthorizedAccessException: Access
Thank you in advance for your support
Nikola_Macedonia
