VMWare Tools prevents sysprep generalize in Windows 10 1803

[jparnell8839]

Come across an interesting issue this week. VMWare Tools prevents sysprep from completing when using /generalize parameter as long as VMWare Tools is installed in the guest.

I first discovered this using VMWare Workstation Pro 11 (as that's what our license currently is), but decided to test to see if VMWare Workstation Pro 14 had the same results, and after downloading the trial and setting up Windows 10, I found it did.

Problem: VMWare Tools prevents sysprep from generalizing Windows inside of Windows 10 Enterprise 1803. Results in the following entry in the setupact.log in C:\Windows\System32\sysprep\UnattendGC:

[0x0f00a7] SYSPRP WinMain:Failed to process unattend file's 'generalize' pass; hr = 0x80070005

Steps to replicate problem:

1. Create new VMWare Workstation guest. Install Windows 10 Enterprise 1803 x64
2. Once OOBE starts, enter audit mode
3. Install VMWare Tools (Click VM → Install VMWare Tools, open virtual CD drive on guest, run the setup, reboot).
4. Run CMD as admin and enter the following command:

sysprep.exe /generalize /oobe /unattend:C:\Path\to\Unattend.xml /shutdown

Expected behavior:

Sysprep, generalize, and reseal guest Windows installation to prepare for image capture and initiate OS shutdown

Actual behavior:

Sysprep exclaims "A fatal error has occurred", result 0x80070005

Sysprep quits.

It should be noted that if you skip step 3 in "Steps to replicate problem", it proceeds as it should, but this makes it borderline impossible to get needed customizations from host to guest.

Am I just going crazy here?

I can provide my unattend.xml, and any logs necessary (after sanitation, of course), upon request.

[Vijay2027]

I had the same issue and was forced to use had to use build1709.

[jparnell8839]

Not sure if this is against the rules or not, but replying just to bump