Windows install failed after sysprep on 24H2

Posted by ddCorazon@reddit | sysadmin | View on Reddit | 8 comments

Hello everyone,

Hope your'all doing well

I have an issue on Windows during installation with sysprep.

To give you some context, I created a Windows 11 24H2 VM, then from audit mode, I updated it to the latest version with build 26100.4484, KB5060829.

I then performed a sysprep with the command:

sysprep.exe /generalize /oobe /shutdown

Once done, I booted from the ISO, ran a DISM, then captured an image of the C drive, and used the generated install.wim file to replace the default one in the Windows ISO and created a new ISO.

the commande used to capture is

DISM /Capture-Image /ImageFile:D:\install.wim /CaptureDir:C:\ /Name:"Win11Custom"

The problem I’m facing is that when the installation starts, towards the end, I get an error message: "Windows installation failed."

Here are the logs I found in setuperr.log under X: $WINDOWSBT\sources\panther

2025-07-07 12:45:49, Error MOUPG CUnattendManager::Initialize(90): Result = 0x80070490[gle=0x00000002]

2025-07-07 12:45:49, Error MOUPG CMoSetupOneSettingsHelperT::InitializeSettings(324): Result = 0x80072EE7

2025-07-07 12:45:49, Error MOUPG CSetupHost::InitializeOneSettings(1551): Result = 0x80072EE7

2025-07-07 12:45:49, Error MOUPG SetupHost: OneSettings initialization failed: [0x80072EE7]

2025-07-07 12:45:49, Error MOUPG CSetupManager::GetWuIdFromRegistry(12357): Result = 0x80070002.

I tried many things like disable network card, running install with and without internet, adding unattend file before sysprep with this true

adding unattend.xml in sources\$OEM$\$$\Panther\unattend.xml

I cannot manage to make it work, still failed after install.

Does someone have an idea?
Thanks