Failed to deploy VM from a template, VM Customization Specifications are not working

Products

• VMware vCenter Server 8.0

Issue/Introduction

In setupact.log,  similar error messages may be seen:

[YYYY-MM-DDTHH:MM:SS], Error                 SYSPRP Sysprep_Clean_Validate_Opk: Audit mode cannot be turned on if reserved storage is in use. An update or servicing operation may be using reserved storage.; hr = 0x800F0975
[YYYY-MM-DDTHH:MM:SS], Error                 SYSPRP ActionPlatform::LaunchModule: Failure occurred while executing 'Sysprep_Clean_Validate_Opk' from C:\Windows\System32\spopk.dll; dwRet = 0x975
[YYYY-MM-DDTHH:MM:SS], Error                 SYSPRP SysprepSession::Validate: Error in validating actions from C:\Windows\System32\Sysprep\ActionFiles\Cleanup.xml; dwRet = 0x975
[YYYY-MM-DDTHH:MM:SS], Error                 SYSPRP RunPlatformActions:Failed while validating Sysprep session actions; dwRet = 0x975
[YYYY-MM-DDTHH:MM:SS], Error      [0x0f0070] SYSPRP RunDlls:An error occurred while running registry sysprep DLLs, halting sysprep execution. dwRet = 0x975
[YYYY-MM-DDTHH:MM:SS], Error      [0x0f00d8] SYSPRP WinMain:Hit failure while pre-validate sysprep cleanup internal providers; hr = 0x80070975
[YYYY-MM-DDTHH:MM:SS], Info       [0x0f0052] SYSPRP Shutting down SysPrep log
......
[YYYY-MM-DDTHH:MM:SS], Info                  SYSPRP ActionPlatform::LaunchModule: Successfully executed 'Sysprep_Respecialize_Pnp' from C:\Windows\System32\sppnp.dll
[YYYY-MM-DDTHH:MM:SS], Info                  SYSPRP SysprepSession::Execute: Sysprep mode was not specified, deleting it from registry
[YYYY-MM-DDTHH:MM:SS], Info       [0x0f0052] SYSPRP Shutting down SysPrep log
[YYYY-MM-DDTHH:MM:SS], Info       [0x0f004d] SYSPRP The time is now YYYY-MM-DDTHH:MM:SS

Environment

VMware vCenter Server 7.x
VMware vCenter Server 8.x

Cause

The guest OS encountered a problem while executing sysprep, causing the operation to fail.

Resolution

Contact Guest OS vendor for assistance with this issue in the Guest OS.