SWV: windows 10 build 1703 layers leaves layers in a corrupted state

Products

• Workspace Virtualization (formerly SVS)

Issue/Introduction

Clean install of Windows 10 Enterprise, no other products installed.

1. Install SWV 7.6.247 and reboot
2. Create an empty layer
3. Attempt to activate the layer 
4. Presented with error code 1040

error 1040 

Cause

Microsoft has added further checks to limit orphaned keys. 

Environment

windows 10 build 1703

svsadmin build 7.6.247 and earlier. 

Resolution

This has been fixed in 7.6 HF 10