I've never had an issue taking ownership of any folder on any system and I've been using "take ownership" for many years. As long as you are the admin it should not be an issue.
Sorry for leaving this post for quite some time. Was busy thus putting the laptop aside.
I've added the "Take Ownership" option to the context menu and run it on the System32 folder, but still getting the same prompt that I need permission in order to replace the webio.dll file. So I boot into safe mode, and this time I'm able to replace the webio.dll. However, the issue still persist despite with an "healthy" webio.dll.
Meanwhile, I notice one thing that I didn't in the past - on the webio.dll error pop up, the dialogue box header reads
"AVGUI.exe - Bad Image" and
"avguix.exe - Bad Image". So, seems like AVG is causing the problem.
So I tried to remove AVG in normal mode and safe mode, but fail with "Unexpected Error" with error code 0xc00700c1. I've tried different removal tool from AVG but doesn't work. The
AVG_Clear tool fails to run due to the same webio.dll error. The
AVG_Remover tool only detected and remove the AVG Internet Security but not the AVG Antivirus FREE.
I'll try to contact AVG for support on this.