In order to fix this, you must open Regedit and search for this. Computer\HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Control\WMI\Autologger\EventLog-System\{b675ec37-bdb6-4648-bc92-f3fdc74d3ca2}
 
Inside Enabled and EnableProperty change the value to a 0 from 1 and now this error will no longer appear in the Event Viewer during PC restarts/shut down.
Here I found out from another users advice. windows 7 - Event Viewer: Event ID 2 'Session "Circular Kernel Context Logger" failed to start with the following error: 0xC0000035' - Super User
To Open Control Panel -> System -> Administrative Tools -> Performance Monitor. Under Data Collector Sets -> Event Trace Sessions, verify that the Context Logger is running. I have no problem with the Context Logger this always runs.
 
However, the PerfDiag Logger session disappears after a few minutes on PC boot. It does not run at all times, I have no idea whether this behaviour is normal. Maybe others can confirm if this behaviour is normal for it to stop running after a while.
 
All I know is that this error gets logged in event viewer on PC restart/shut down but it doesn't happen absolutely every single time. Sometimes it doesn't run on PC launch and other times it would run for a few minutes and then disappear.