I also had this problem so posting a reply for all it might help.
Here's how to walk thru changing the security on the LIDCLOSE (and any other power option that is blocked, all this is general purpose):
1. Get your GUID for the active profile
powercfg -getactivescheme
2. Dump the list of permissions/settings
powercfg -qh {GUID from above} > list.txt
(this is a large output redirect it to a file)
Now in this you will see the following if you search for "lid"
NOTE: see in the below the current index is "1" for ac (plugged in) as well as dc (battrery). This is what we are trying to change! I want "0" (Do nothing)
Power Scheme GUID: 8c5e7fda-e8bf-4a96-9a85-a6e23a8c635c
Subgroup GUID: 4f971e89-eebd-4455-a8de-9e59040e7347 (Power buttons and lid)
Power Setting GUID: 5ca83367-6e45-459f-a27b-476b1d01c936 (Lid close action)
Possible Setting Index: 000
Possible Setting Friendly Name: Do nothing
Possible Setting Index: 001
Possible Setting Friendly Name: Sleep
Possible Setting Index: 002
Possible Setting Friendly Name: Hibernate
Possible Setting Index: 003
Possible Setting Friendly Name: Shut down
Current AC Power Setting Index: 0x00000001
Current DC Power Setting Index: 0x00000001
3. In order to be able to change it, either thru the Power Management UI or thru the command line, the security descriptor for LID CLOSE needs to be changed
4. Get the current security descriptor:
powercfg -getsecuritydescriptor LIDACTION
on my system, this returned:
O:BAG:SYD:P(A;CI;KR;;;BU)(A;CI;KR;;;BA)(A;CI;KA;;;SY)(A;CI;KA;;;CO)
5. In the above the first two items in parens relate to permissions for BU (Built-in Users) and BA (Built-in Administrators)
6. Note that for SY (Local System) the Registry Key Access is set to "KA" for All Key Access vs. "KR" for Key Read
7. Change that value to unlock this function
powercfg -setsecuritydescriptor LIDACTION O:BAG:SYD:P(A;CI;KA;;;BU)(A;CI;KA;;;BA)(A;CI;KA;;;SY)(A;CI;KA;;;CO)
[just change the "KR" to "KA"]
8. Now you can set thru the UI or, thru the command line using :
powercfg -setacvalueindex Scheme_GUID Sub_GUID Setting_GUID SettingIndex
use all the GUIDs for your current scheme, sub and setting (clearly noted from the -qh output) and on my system the setting index is "0" for "Do nothing"
9. You can check thru UI, -qh again, and so forth