I seem to have found the problem, the lady from Microsoft helped me to solve this problem, she was senational.
Below is the method
"It appears that the permission in some registry keys is even not granted to the local admin account on your side. Generally, to further troubleshoot the issue, I will suggest that you use Process Monitor to collect the file/registry usage when repro the "OS Error 5 – Access is denied":
Process Monitor v1.35
How to use it
1. Open Process Monitor to start the log collection
2. Perform the change/operation in Management Studio
3. When you got the same OS error 5, click Capture button to stop the log collection
Then, you can check the captured log to see which necessary permission is missing for that account. "
I found the reg key and added the SQL service Account. Restarted the Agent and now all works.
hope this helps someone else.