The new Microsoft Smartcard class driver (WudfUsbccid.dll) supports both CCID and ICCD Smartcard devices. Because of this, it does a sanity check on the device type reported by the hardware. Unfortunately, the ActivCard reader is really a CCID reader but its firmware is reporting itself as an ICCD device. Because of this, the driver failed to start. This is a known issue to Microsoft and it is being addressed. In the mean time, you may want to download the driver from the ActivCard web site instead of using the Microsoft in-box class driver.
Thanks.