Update2: Trend 4.995.00 Patch wrecking havoc across networks

Trend is now acknowledging the issue. Also as posted in one of the comments below there is a partial solution. However the official solution is to update 3.6 to 3.6 Patch 1 (direct Link)

First find the NTRtScan.exe file
in C:\Program Files\Trend Micro\Security Server\PCCSRV\Pccnt

Right Click on it to check the version.

If you have 7.6.0.1095 then you need the patch (not sure about other versions, call Trend)

after the patch you will be at 7.6.0.1161

After applying you may need to reboot.
Use TMTouch.exe to force clients to update to 7.6.0.1161