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File permissions don't inherit after moving to a different directory

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Hello,

I'm having a problem when moving files from one directory to another directory as described in the following article: ttps://support.microsoft.com/kb/2560088/en-us?wa=wsignin1.0 (please add the "h" in https as the forum would not allow me to insert links)

I understand this is a know issue when moving within the same drive. I tried applying the fix noted in the above article, but received the following message: The update is not applicable to your computer.

This is causing all kinds of issue and would really appreciate the help.

Server Information:

Windows Server 2008 R2 X64 with SP1 (Virtual Server - HyperV)

Installed Role(s): File Services

Installed Feature(s): Windows PowerShell Intergraded Scripting Environment (ISE)

Windows Updates: Almost fully patched (fully patched up to 1/17/2015)

System is on a domain


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