Sysprep Fails when creating a new Template in Microsoft Virtual Machine Manager:
Error (706)
Sysprep failed for virtual machine VMName
Recommended Action
Try the operation again.
Is there a more detailed log available for this error? This error is not helpful. This same configuration worked previously, but now fails consistently.
Update
The issue was that the VHD was locked by another process. Cloning and sysprepping the clone worked fine.
Have you checked your rearm count? You only get 4 (considering you're using something newer than XP). Check your rearms by running this in a command prompt (run as admin):
I also remember seeing something about stopping services when I used to image in Fusion (yes, I built Windows images on a Mac!) Check into the Media Sharing service and see if stopping it makes a difference.
Here are log file locations for different sysprep options:
Hope this helps!