Windows Server 2016 virtual machine fails to load following P2V conversion

Products

• VMware vCenter Server
• Converter

Issue/Introduction

After performing a Physical to Virtual (P2V) conversion of a Windows Server 2016 system using VMware vCenter Converter, the newly created virtual machine (VM) failed to complete the Windows configuration process. The VM entered a continuous reboot loop, preventing access to the login screen.

The following symptoms and error messages may be observed:

• "Windows could not finish configuring the system"

• "Autochk cannot run due to an error caused by a recently installed software package"

• "Inability to boot into Safe Mode"

• "VMware Tools installation and guest customization (such as domain join or NIC configuration) were unsuccessful"

• "Local Administrator credentials were not accepted, indicating a problem with the Windows setup state"

Environment

VMware vCenter Converter Standalone 6.X

Resolution

1. Booted into Windows Recovery Environment (WinRE):

   • The VM was booted from a Windows Server 2016 ISO to access the recovery environment.

2. Accessed Offline Registry and Modified Keys:

   • From WinRE, the offline registry of the VM's Windows installation was accessed.

   • The following values were manually modified under HKEY_LOCAL_MACHINE\SYSTEM\Setup:

     • OOBEInProgress was set to 0.

     • SetupPhase was set to 0.

     • SetupType was set to 0.

     • SetupShutdownRequired was set to 0.

     • CmdLine was set to cmd.exe.

     • RespecializeCmdLine entry was deleted.

   • Additionally, under HKEY_LOCAL_MACHINE\SYSTEM\Setup\Status\SysprepStatus:

     • CleanupState was set to 2.

     • GeneralizationState was set to 7.

3. Ran File System Integrity Check:

   • chkdsk c: /f was executed from the command prompt within WinRE to verify and fix any file system integrity issues. 

4. Rebooted the VM:

   • Upon reboot, the VM successfully bypassed the Windows configuration setup phase and booted directly to a command prompt, allowing further troubleshooting and configuration.

Note: For further assistance engage Microsoft support