I work in the software support office for the college of engineering. This morning a lot of people came in with computers that had updated themselves with update KB3097877. Once this update is installed, you can't log in, the login screen flashes, and there seems to be a 50/50 chance at system restore fixing the issue.
If you're running Windows 7, I would suggest you either turn off updates for now or uncheck and hide KB3097877.
EDIT: Looks like it's just if you have a touchscreen.
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