Mac needs to repair library after changing location of home directory
NOTE: I got this same error after upgrading from El Capitan (10.11) to Sierra (10.12), so hopefully this will work for your issue.
Steps I took to resolve this:
- Open Terminal and copy the following: "defaults write com.apple.Finder AppleShowAllFiles YES" (do not sudo) and hit return. Then type "killall Finder" and hit return.
- Using Finder, select Go > Computer > Macintosh HD > Users > User Folder > User Library. Right click and select Get Info > Permissions
- In info Library window, unlock to make changes and ensure there are no other users except User and Everyone. Toggle “Read & Write” to “Read” and back to “Read & Write”. Select the gear icon to apply to enclosed items.
- Close all credential prompt dialogs by hitting Cancel until the prompts stop. Reboot your system and the issue should be resolved.