SAD: I had the same error message. It would always show up when the game tried and failed to install Direct Play.
I got it to succeed by running it in Windows 95 compatibility mode. After that, it was possible to run the game in Windows XP SP3 (or 2) compatibility mode, with display scaling turned off.
I quickly ran into other issues though. :-(

Razorfist2016: Hey i assume you got the 0xc0000022 error fixed via gog support ??? , the same problem is killing me right now :(

SAD: Umm, no.
I got it fixed by launching the game in Win 95 compatibility mode.
I didn't contact gog support at all.

Weirdly enough, now the game works best with all compatibility options OFF. It still crashes every once in a while, but not very often.

And yes, software renderer.

Razorfist2016: well this is confusing , i mean what about the dgvoodoo and ddraw.dll fixes for running in hardware mode with the hd textures and other goodies.......you're saying that hardware mode in win 10 is just dysfunctional as of this moment ??? , coz if that's the case i don't want ro run in software mode as it's just flatout ugly in that mode :(

SAD: I've decided to summarize everything I did to make the game run relatively crash-free under Windows 10.
The following instructions work both for the main game, as well as the expansion.
No patches or external software necessary, just the game files as they come from GOG (base game v2.0.0.6, Mysteries of the Sith v2.0.0.5).

1. Install the game.
2. Set the game to run in comaptibility mode with Windows 95. This was necessary to let the game to install Direct Play, otherwise it would fail and then would show the error message from the title of the thread.
3. After it succeeds, set the following compatibility options:
a) Compatibility mode: Windows XP (Service Pack 2 or 3, probably doesn't matter).
b) Disable display scaling on high DPI settings.
This should let you launch the game.
4. In-game setup: display.
a) Disable 3D acceleration. Can't have it without unofficial patches/external software and that's not what this guide is about.
b) Pick a display resolution. Stick to 4:3 width to height proportions, otherwise the image will get stretched horizontally. The game hides options your monitor doesn't support, so any choice is safe here.
c) Advanced settings: make sure the top 2 options are set to: [SW] something-or-other.
5. In-game setup: sound.
Set number of digital channels to 8 (it's 16 by default).
Not sure if you need to. If the game tends to suddenly go silent after a minute or two of playtime, and then crashes a while later, then you do.
6. Back in Windows: uncheck ALL compatibility settings for the game (both the overall Compatibility mode, as well as all the detailed settings).
Yes, I know what I said in point 3, but that was back in point 3. Now uncheck them all.

You may be wondering about point 6. The game runs OK now, so why keep messing with it? One reason is I think it will crash less often if you do point 6, but that may just be my impression. More importantly, you may eventually start getting an error message that says something about the game needing at least 256 colors to run and the game will refuse to launch. This may happen after several seemingly problem-free sessions. When it does, you really need to do point 6.

It may or may not be necessary to run the game as Administrator for one or more of the above points, I don't remember. Right now I can play normally, but that's after I got everything set up.

The game may still crash occasionally, especially when switching display mode back to normal gameplay after you leave the menu or an FMV cutscene ends, or a new level loads. Remember to save each time you want to check your objectives or the 3D map. It may sometimes look like it crashed during saving, but it actually crashes while returning to gameplay AFTER the save is made, so the save won't be broken.

After quitting (or crashing), the game may sometimes fail to launch repeatedly, with no error message, especially if you haven't done point 6 yet. Just restart Windows and it should launch OK.

After quitting (or crashing) back to desktop, you may sometimes notice your Windows display resolution is very low. This is nothing to worry about, just set it manually to what it should be in your display driver.

Razorfist2016: Holy mother of all that is good and pure !!!!!!!!!!!!!!!! , i enabled direct play from " turn windows features on/off " from the add/remove option in the goddamn control panel !!!!!!!!!!!!!! , i'm feeling the nerd high right now !!!!

MS has to be fu**ing stupid for disabling direct play in windows 10 by default....screw them.