OSIM W11 24H2 / 25H2 setup fails with Windows installation encountered an unexpected error. Error code: 0x80070035 – 0x40036

Products

• CA Client Automation - IT Client Manager

Issue/Introduction

From the November 2025 release of the Microsoft Windows 11 ISO's, the setup.exe returns an error if additional Network Drivers are included in the unattended.xml file.

Cause

Microsoft have made some change in the latest Windows setup.exe.

Invoking the **root-level setup launcher**, is meant for:

• In-place upgrades
• Running inside a full Windows OS
• Performing compatibility scans
• Loading network-related Windows Setup Platform components (e.g., SetupPlatform, SetupHost)

Inside **WinPE**, this launcher tries to load platform components that **expect network stack + additional services**, which are **not present or not fully initialized** in WinPE.
Then, when Windows Setup reaches a network-driver-injection phase (usually during `offlineServicing`), an internal call that expects full NW stack fails, causing:

### ❌ **0x80070035** → *Network path not found*

### ❌ **0x40036** → Failure during the "specialize" or "offline servicing" phase

This happens **even if you’re not installing from the network** — because SetupPlatform internally initializes certain networking COM components and fails in WinPE.

\sources\setup.exe` is the **intended executable for WinPE**.

It:

• Uses the **WinPE-compatible Windows Setup engine**
• Does NOT run upgrade checks
• Does NOT initialize Windows Update, compatibility, SetupHost, or SetupPlatform components
• Does NOT rely on network stack unless explicitly required
• Fully supports **offlineServicing**, including injecting storage/network drivers

Resolution

Install the 14.6 OSIM W1125H2 certification fix  https://support.broadcom.com/web/ecx/solutiondetails?aparNo=99112594&os=WINDOWS-ALL 

Or,

OSIM Edit the file "\camenu\Your_image_name.cmd" and change the line:

setup.exe /unattend:c:\ca-osim\unattend.xml

To:

sources\setup.exe /unattend:c:\ca-osim\unattend.xml