Basic questions...did you disable any antivirus, or do the system restore in safe mode?
You can try to
create a restore point manually.
Disable your antivirus or security software and then try to create a system restore point.
Boot in Safe Mode and see if you create a system restore point or restore to a prior restore point. Many a times, non-Microsoft services or Drivers can interfere with the proper functioning of System Restore. Alternatively you could also execute a Clean Boot and see if you are able to get system restore working.
Run the System File Checker ie. Run sfc /scannow from an elevated command prompt. Reboot on completion and try now.
Run Check Disk, by opening an elevated command prompt. Type chkdsk /f /r and hit Enter. Let the process complete and then try again.
Make sure that System Restore is enabled on the drives where you want System Restore enabled. Right-click computer > Properties > System protection. Check Protection settings. To store restore points, you need at least 300 MB of free space on each hard disk that has System Protection turned on.
Make sure that you have sufficient disk space on all the drives where System Restore is enabled
Type Services.msc in Start Menu Search Box, hit Enter. Make sure that the Volume Shadow Copy & Task Scheduler & Microsoft Software Shadow Copy Provider Service is Running and set on Automatic. If the Status of System Restore Service is Not Started, Start it. Also set it on Automatic if it is not. A reboot may be required. Re-confirm again, and now try.
Type eventvwr.msc /s in Search Box & hit Enter to open the Event Viewer. Double-click on Applications & Services Logs and see if you are able to evaluate the event description or the cause of problem.
Reset the Repository. To do so follows these steps:
Boot into Safe Mode without networking and open a command prompt as administrator.
Now Type net stop winmgmt and hit Enter. This will stop the Windows Management Instrumentation Service
Next go to C:\Windows\System32\wbem and rename the repository folder to repositoryold
Restart.
Again open a command prompt as administrator, type net stop winmgmt and hit Enter.
Next type winmgmt /resetRepository and hit Enter.
Restart.
Now see if you can create a System Restore Point manually.
Hope something helps.