This issue may occur if the virtual machine was part of a domain before converting to a template. In this case, you need to convert the template back to a virtual machine, unjoin domain, and then convert it to template again.
This issue may also occur if the original operating system contains a registry key that is larger than 8KB. To resolve this issue, you must apply a Microsoft hotfix on the original operating system.
Note: The hotfix for this issue is included in the Microsoft's Service Pack 1.
To check the Windows 7 Service Pack level:
- To verify if Service Pack 1 is installed, click Start and click Computer. If installed, Service Pack is 1 listed under the Windows edition section at the top.
- If Service Pack 1 is installed:
- Take a snapshot of the virtual machine.
To take a snapshot, right-click the virtual machine and click Snapshot > Take Snapshot.
- Apply the Microsoft hotfix (only when you want to resolve this behavior).
- If the hotfix does not resolve the issue, revert to the old snapshot.