Error loading file or assembly - A device attached to the system is not functioning. (Exception from HRESULT: 0x8007001F)

Over the weekend our IT team has upgraded our storage devices. We are now seeing the following message in our Event Logs:

Failed to initialize the AppDomain:/LM/W3SVC/3/ROOT/XP2

Exception: System.IO.FileLoadException

Message: Could not load file or assembly 'System.Web, Version=4.0.0.0, Culture=neutral, PublicKeyToken=b03f5f7f11d50a3a' or one of its dependencies. A device attached to the system is not functioning. (Exception from HRESULT: 0x8007001F)

StackTrace:    at System.Reflection.RuntimeAssembly._nLoad(AssemblyName fileName, String codeBase, Evidence assemblySecurity, RuntimeAssembly locationHint, StackCrawlMark& stackMark, Boolean throwOnFileNotFound, Boolean forIntrospection, Boolean suppressSecurityChecks)
   at System.Reflection.RuntimeAssembly.nLoad(AssemblyName fileName, String codeBase, Evidence assemblySecurity, RuntimeAssembly locationHint, StackCrawlMark& stackMark, Boolean throwOnFileNotFound, Boolean forIntrospection, Boolean suppressSecurityChecks)
   at System.Reflection.RuntimeAssembly.InternalLoadAssemblyName(AssemblyName assemblyRef, Evidence assemblySecurity, StackCrawlMark& stackMark, Boolean forIntrospection, Boolean suppressSecurityChecks)
   at System.Reflection.RuntimeAssembly.InternalLoad(String assemblyString, Evidence assemblySecurity, StackCrawlMark& stackMark, Boolean forIntrospection)
   at System.Activator.CreateInstance(String assemblyName, String typeName, Boolean ignoreCase, BindingFlags bindingAttr, Binder binder, Object[] args, CultureInfo culture, Object[] activationAttributes, Evidence securityInfo, StackCrawlMark& stackMark)
   at System.Activator.CreateInstance(String assemblyName, String typeName)
   at System.AppDomain.CreateInstance(String assemblyName, String typeName)
   at System.AppDomain.InternalCreateInstanceWithNoSecurity(String assemblyName, String typeName)
   at System.AppDomain.InternalCreateInstanceWithNoSecurity(String assemblyName, String typeName)
   at System.Activator.CreateInstance(AppDomain domain, String assemblyName, String typeName)
   at System.Web.Hosting.ApplicationManager.CreateAppDomainWithHostingEnvironment(String appId, IApplicationHost appHost, HostingEnvironmentParameters hostingParameters)
   at System.Web.Hosting.ApplicationManager.CreateAppDomainWithHostingEnvironmentAndReportErrors(String appId, IApplicationHost appHost, HostingEnvironmentParameters hostingParameters)

I have seen a lot of posts around the error:

A device attached to the system is not functioning. (Exception from HRESULT: 0x8007001F)

But they mostly deal with a specific user not being able to login.

We have the application pool set to use a domain account and LoadUserProfile = True. We also have it set to use 25 worker processes and a request limit of 50. I am thinking that some of these worker processes may not be logging in correctly or possibly the network storage is dropping some connections.

Any thoughts on things I can check?