There are 3 ways to deploy printers via GPO:

1. logon script using net use commands
2. Group Policy Deployed printers
3. Group Policy Preferences

When deploying printers in user context it is important to use Run in logged-on user’s security context (user policy option) This solves error

The user ‘Printer′ preference item in the ‘Printers GPO’ Group Policy object did not apply because it failed with error code ‘0x80070005 Access is denied.’ This error was suppressed.