xp_cmdshell raises error "a call to LogonUserW failed with error code 1385"

xp_cmdshell requires a couple of permissions to enable non-sysadmin users to run it, and even when you think you have enabled it in surface area config, and assigned an account to the ##xp_cmdshell_proxy_account##, you will frequently find you still encounter the following error:

An error occurred during the execution of xp_cmdshell. A call to 'LogonUserW' failed with error code: '1385'.

In order to fix this you need to open the Local Security Settings on the host machine.
 
Navigate to Security Settings -> Local Policies -> User Rights Assignment.
 
Now open "Log on as a batch job" and add the user you assigned to the xp_cmdshell proxy account - and you should find it runs fine now.