Where I got the idea to try on my machine: http://osxdaily.com/2016/10/24/macos-sierra-10-12-1-update-available/#comment-2887058
Edit: not needed to remove the Hands Off! settings, a "normal" uninstall preserving settings worked for me.
I have the same problem. Hands Off! is the cause. v3.1.1 does not work with macOS 10.12.1. You can uninstall Hands Off! (and restart) until its updated to support macOS 10.12.1, or if you need Hands Off! then you can live with the problem, or revert back to 10.12.0 from a backup.
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