Windows 10: Error after booting a VM after Sysprep

Howdy,
So we're trying to get our first Win10 VM up and running. I downloaded the latest ISo from the Volume License site and installed it on a VM just fine. I ran all Windows Updates as well.

After that I ran Sysprep and choose OOBE, Generalize, and Shutdown. I then copied the VHDX file to a new location for a new VM as we normally do.

That all seemed to work fine until I then attached that hard drive file to a new VM and fired it up. After clicking the through the timezone page I get an error stating:
Windows could not complete the installation. To install Windows on this computer, restart the installation.

I found some info online about changing the minimum password setting to 0 but that did not help. I then fired up my Template machine to see if that would setup fine and that now gets the same error so I'm kind of stuck.

Has anyone had this error before and is there a fix for it? I don't want to have to do manual steps on every VM we create

:)

 

"defaultuser0" created on clean install of Anniversary Update

i also has the defaultuser0 in c:\users\. i am using the windows 10 1703 iso from VLSC and create golden image in VM and the golden image does not have defaultuser0 profile before i sysprep

after sysprep, and deploy in TS and login, i see defaultuser0 in c:\users\

 

Cumulative Updaates fail every time.

Tried to install updates after putting system in clean boot state. Same results: "Couldn't install up dates, returning system to previous version."

I did get this message after installation attemp: Failded in 1st Boot Stage with error suring SYSPREP.

 

The correct procedure would be:

• Install Windows 10 without a network connection (Yes, really: no network connection until in Audit Mode!)
• When done and the OOBE starts, reboot to Audit Mode
• When in Audit Mode, connect the vm to the network
• Do not update Windows! This is extremely important, the Sysprep process still has some bugs this being one, updating Windows will most probably cause Sysprep to fail
• If customizing, be careful: again one of the Sysprep bugs in Windows 10 is that the CopyProfile component in answer file might cause issues. You can quite safely generalize build 10240 with CopyProfile set to TRUE but later builds 10525, 10532 and 10547 will be totally screwed if CopyProfile is used
• Run the Sysprep
• Capture the image
• Deploy the image to a new vm or physical machine

 

We don't do any customization at all. We only update our templates so that Windows Updates are completed. The rest of our settings are GPO pushes.

So I guess I might as well just install Windows directly on each VM since it doesn't take very long and will wait to make a Template image until they fix Sysprep?

Thanks.