Found what the issue was, Client was not connecting due to a registry key.
Cause
The following registry key is set incorrectly after a new image is deployed to the computer.
HKLM | Software | Microsoft | Windows | CurrentVersion | Setup | State | ImageState
This may be caused by Microsoft sysprep information corruption during the creation of the image.
Solution
Change the registry key
HKLM | Software | Microsoft | Windows | CurrentVersion | Setup | State | ImageState = IMAGE_STATE_COMPLETE
Restart the DAgent service.
The reg key said IMAGE_STATE_UNDEPLOYABLE origionally.
After making this change, the DAGENT came back online and started communicating normally.