VM customization failing to complete on Windows guest OS as expected since the guest OS is trying to join to the domain but the customization indicates no domain should be joined.
As result, the defined customizations will not be performed.
Logs from the domain join investigation inside the Windows guest OS are similar to this:
setupact:
YYYY-MM-DD HH:00:00, Info [setup.exe] [Action Queue] : Executing command "C:\WINDOWS\SYSTEM32\DJOIN.EXE" specialize
YYYY-MM-DD HH:15:10, Info [setup.exe] [Action Queue] : process exit code = 0
YYYY-MM-DD HH:15:10, Info [setup.exe] [Action Queue] : Unattend action returned operation complete.
setuperr:
YYYY-MM-DD HH:15:10, Error [DJOIN.EXE] Unattended Join: NetJoinDomain failed error code is [2695]
YYYY-MM-DD HH:15:10, Error [DJOIN.EXE] Unattended Join: Unable to join; gdwError = 0xa87
setupatc:
YYYY-MM-DD HH:00:00, Info [DJOIN.EXE] Unattended Join: Begin
YYYY-MM-DD HH:00:00, Info [DJOIN.EXE] Unattended Join: Loading input parameters...
YYYY-MM-DD HH:00:00, Info [DJOIN.EXE] Unattended Join: AccountData = [NULL]
YYYY-MM-DD HH:00:00, Info [DJOIN.EXE] Unattended Join: UnsecureJoin = [NULL]
YYYY-MM-DD HH:00:00, Info [DJOIN.EXE] Unattended Join: MachinePassword = [secret not logged]
YYYY-MM-DD HH:00:00, Info [DJOIN.EXE] Unattended Join: JoinDomain = [NULL]
YYYY-MM-DD HH:00:00, Info [DJOIN.EXE] Unattended Join: JoinWorkgroup = [base#####]
YYYY-MM-DD HH:00:00, Info [DJOIN.EXE] Unattended Join: Domain = [NULL]
YYYY-MM-DD HH:00:00, Info [DJOIN.EXE] Unattended Join: Username = [NULL]
YYYY-MM-DD HH:00:00, Info [DJOIN.EXE] Unattended Join: Password = [secret not logged]
YYYY-MM-DD HH:00:00, Info [DJOIN.EXE] Unattended Join: MachineObjectOU = [NULL]
YYYY-MM-DD HH:00:00, Info [DJOIN.EXE] Unattended Join: DebugJoin = [NULL]
YYYY-MM-DD HH:00:00, Info [DJOIN.EXE] Unattended Join: DebugJoinOnlyOnThisError = [NULL]
YYYY-MM-DD HH:00:00, Info [DJOIN.EXE] Unattended Join: TimeoutPeriodInMinutes = [NULL]
YYYY-MM-DD HH:00:00, Info [DJOIN.EXE] Unattended Join: Checking that auto start services have started.
YYYY-MM-DD HH:00:00, Info [DJOIN.EXE] Unattended Join: Joining workgroup [base#####]...
YYYY-MM-DD HH:00:00, Warning [DJOIN.EXE] Unattended Join: NetJoinDomain attempt failed: 0xa87, will retry in 10 seconds...
Around 15 minutes will pass while the guest OS is still trying to join the domain then it exits the attempts.
YYYY-MM-DD HH:15:00, Warning [DJOIN.EXE] Unattended Join: NetJoinDomain attempt failed: 0xa87, will retry in 10 seconds...
YYYY-MM-DD HH:15:10, Error [DJOIN.EXE] Unattended Join: NetJoinDomain failed error code is [2695]
YYYY-MM-DD HH:15:10, Error [DJOIN.EXE] Unattended Join: Unable to join; gdwError = 0xa87
YYYY-MM-DD HH:15:10, Info [DJOIN.EXE] Unattended Join: Exit, returning 0x0
This is a third party issue as described in "Joining Domain when Selecting Workgroup"
Contact Microsoft support for resolution.