Windows 11 Sysprep Installation has failed

grautela4

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Guys, I am getting the following error while installing the OS

I have created a custom image via sysprep, installed the following software - Decrypted Bitlocker, Forcepoint DLP, Acrobat Reader, Chrome, Edge, CrowdStrike, 7Zip, Cato, Global Protect, MBAM2.2Client + hotfix, Bigfix client, Okta Verify app.

After that tweaked some settings from Ntlite and created the ISO, but while installing it on the Hyper-V, it's failing and giving the below error.
Logs collected from - C:\Windows\Panther

2025-09-02 08:19:02, Error MOUPG CMoSetupOneSettingsHelperT<class CEmptyType>::InitializeSettings(324): Result = 0x800706D9[gle=0x0000007e]
2025-09-02 08:19:02, Error MOUPG CSetupHost::InitializeOneSettings(1551): Result = 0x800706D9
2025-09-02 08:19:02, Error MOUPG SetupHost: OneSettings initialization failed: [0x800706D9]
2025-09-02 08:19:02, Error MOUPG CSetupManager::GetWuIdFromRegistry(12498): Result = 0x80070002
2025-09-02 08:19:08, Error MOUPG CDlpActionProductKeyValidate::ReportDownlevelInstallChannel(3648): Result = 0x80070490
2025-09-02 08:19:08, Error MOUPG ProductKey: Failed to report Host OS channel to telemetry.
2025-09-02 08:19:09, Error CONX hwreqchk: ERROR,Windows::Compat::HardwareRequirements::HardwareRequirementSettings::IsMeteredConnection,29,Failed to get NetworkCostType assuming metered network [0x80040154].

2025-09-02 08:19:09, Error CONX hwreqchk: ERROR,Windows::Compat::HardwareRequirements::HardwareRequirementSettings::GetSettingsFromEndpoint,244,Failed to retrieve Sqm DeviceId: [0x80070002].

2025-09-02 08:19:09, Error CONX hwreqchk: ERROR,Windows::Compat::HardwareRequirements::HardwareRequirementSettings::GetSettings,94,Failed to get settings from endpoint [0x80070002].

2025-09-02 08:19:09, Error CONX hwreqchk: ERROR,ProcessJson,606,Unable to GetSettings [0x80070002]

2025-09-02 08:19:09, Error CONX hwreqchk: ERROR,Windows::Compat::HardwareRequirements::HardwareRequirementSettings::IsMeteredConnection,29,Failed to get NetworkCostType assuming metered network [0x80040154].

2025-09-02 08:19:09, Error CONX hwreqchk: ERROR,Windows::Compat::HardwareRequirements::HardwareRequirementSettings::GetSettingsFromEndpoint,244,Failed to retrieve Sqm DeviceId: [0x80070002].

2025-09-02 08:19:09, Error CONX hwreqchk: ERROR,Windows::Compat::HardwareRequirements::HardwareRequirementSettings::GetSettings,94,Failed to get settings from endpoint [0x80070002].

2025-09-02 08:19:09, Error CONX hwreqchk: ERROR,ProcessJson,606,Unable to GetSettings [0x80070002]

2025-09-02 08:19:11, Error MOUPG CDlpResponseInstallLocation::ObtainData(122): Result = 0x8007000D
2025-09-02 08:19:11, Error MOUPG CDlpActionDiskManagement::GetDriveLetterFromUnattend(877): Result = 0x8007000D
2025-09-02 08:19:25, Error SP CNewSystem::PreInitialize: FveCheckSuspendBitLockerOnUpgrade failed: 0x8031004a, assuming auto-unlock is not supported
2025-09-02 08:23:09, Error SP Setting language settings failed. Error: 0x80004005[gle=0x0000007a]
2025-09-02 08:23:52, Error IBSLIB BCD: Failed to add system store from file. File: \Device\HarddiskVolume4\EFI\Microsoft\Boot\BCD Status: c000000f[gle=0x00000002]
2025-09-02 08:23:52, Error SP BFSVC: AddBootmgrLast and PreserveBootOrder options are ignored when custom volume is specified[gle=0x00000717]
2025-09-02 08:23:52, Error SP CRelocateOS: Cannot move path C:\$WINDOWS.~BT\NewOS\Windows.old from Windows.NEW. Error: 0x000000B7
2025-09-02 08:23:52, Error SP Operation failed: Relocate OS from C:\$WINDOWS.~BT\NewOS to C:\. Error: 0x800700B7
2025-09-02 08:23:52, Error SP ExecuteOperations: Main operation execution failed. Error: 0x800700B7
2025-09-02 08:23:52, Error SP ExecuteOperations: Failed execution phase Finalize. Error: 0x800700B7
2025-09-02 08:23:52, Error MOUPG MoSetupPlatform: Finalize reported failure![gle=0x000000b7]
2025-09-02 08:23:52, Error MOUPG MoSetupPlatform: Using action error code: [0x800700B7][gle=0x000000b7]
2025-09-02 08:23:52, Error MOUPG CDlpActionFinalize::ExecuteSetupPlatformFinalize(1252): Result = 0x800700B7[gle=0x000000b7]
2025-09-02 08:23:52, Error MOUPG CDlpActionFinalize::ExecuteRoutine(527): Result = 0x800700B7[gle=0x000000b7]
2025-09-02 08:23:53, Error MOUPG CDlpActionImpl<class CDlpErrorImpl<class CDlpObjectInternalImpl<class CUnknownImpl<class IMoSetupDlpAction> > > >::Execute(503): Result = 0x800700B7
2025-09-02 08:23:53, Error MOUPG CDlpTask::ExecuteAction(3334): Result = 0x800700B7
2025-09-02 08:23:53, Error MOUPG CDlpTask::ExecuteActions(3487): Result = 0x800700B7
2025-09-02 08:23:53, Error MOUPG CDlpTask::Execute(1643): Result = 0x800700B7
2025-09-02 08:23:53, Error MOUPG CSetupManager::ExecuteTask(3118): Result = 0x800700B7
2025-09-02 08:23:53, Error MOUPG CSetupManager::ExecuteTask(3080): Result = 0x800700B7
2025-09-02 08:23:53, Error MOUPG CSetupManager::ExecuteInstallMode(1161): Result = 0x800700B7
2025-09-02 08:23:53, Error MOUPG CSetupManager::ExecuteDownlevelMode(611): Result = 0x800700B7
2025-09-02 08:23:53, Error MOUPG CSetupManager::GetDUSetupResults(8520): Result = 0x80070490
2025-09-02 08:23:53, Error Service DiagTrack is not available
2025-09-02 08:23:54, Error MOUPG CSetupManager::Execute(347): Result = 0x800700B7
2025-09-02 08:23:54, Error MOUPG CSetupHost::Execute(517): Result = 0x800700B7
 
I'm not sure we'll find the exact reasons from the Panther logs, since there's a lot happening.

Let's start with the basic questions:
1. When sysprepping the image, did you disable the networking so WU isn't running in the background and updating apps?
2. Was the image generalized?
3. Did you remove Windows.old first? (presuming this is W11 24H2)
3. If you repeat the sysprep & capture process (but didn't install any 3rd-party apps), does the non-customized image finish installing?

The goal is to narrow down where in the process it stopped being a workable image.
 
Hey Garlin, please find my answer below

1. In starting yes, I have disabled it, but for installing, I have enabled the networking and disabled it afterwards (I did this because my previous sysprep was failing when enabling the networking, and when I used to fix the sysprep failing issues, the Win11 installation was failing at 5/10%).
2. Yes, it was generalized.
3. Yes, I removed the windows.old by deleting it.
4. I haven't tried that yet.
 
Sysprep had no issues, the only problem is that while installing the OS, I am getting the error.


So I have prepared the ISO again from NTlite, and this time with updates. I have deselected all the UWP apps, and now the Win Installer is reaching 100% but still failing after it says the machine will restart several times. I have attached the images.
 

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Last edited:
This is the new error

2025-09-02 14:45:00, Error MOUPG CMoSetupOneSettingsHelperT<class CEmptyType>::InitializeSettings(324): Result = 0x80072EE7
2025-09-02 14:45:00, Error MOUPG CSetupHost::InitializeOneSettings(1551): Result = 0x80072EE7
2025-09-02 14:45:00, Error MOUPG SetupHost: OneSettings initialization failed: [0x80072EE7]
2025-09-02 14:45:00, Error MOUPG CSetupManager::GetWuIdFromRegistry(12498): Result = 0x80070002
2025-09-02 14:45:01, Error MOUPG CDlpActionProductKeyValidate::ReportDownlevelInstallChannel(3648): Result = 0x80070490
2025-09-02 14:45:01, Error MOUPG ProductKey: Failed to report Host OS channel to telemetry.
2025-09-02 14:45:02, Error CONX hwreqchk: ERROR,Windows::Compat::HardwareRequirements::HardwareRequirementSettings::IsMeteredConnection,29,Failed to get NetworkCostType assuming metered network [0x80040154].

2025-09-02 14:45:02, Error CONX hwreqchk: ERROR,Windows::Compat::HardwareRequirements::HardwareRequirementSettings::GetSettingsFromEndpoint,244,Failed to retrieve Sqm DeviceId: [0x80070002].

2025-09-02 14:45:02, Error CONX hwreqchk: ERROR,Windows::Compat::HardwareRequirements::HardwareRequirementSettings::GetSettings,94,Failed to get settings from endpoint [0x80070002].

2025-09-02 14:45:02, Error CONX hwreqchk: ERROR,ProcessJson,606,Unable to GetSettings [0x80070002]

2025-09-02 14:45:02, Error CONX hwreqchk: ERROR,Windows::Compat::HardwareRequirements::HardwareRequirementSettings::IsMeteredConnection,29,Failed to get NetworkCostType assuming metered network [0x80040154].

2025-09-02 14:45:02, Error CONX hwreqchk: ERROR,Windows::Compat::HardwareRequirements::HardwareRequirementSettings::GetSettingsFromEndpoint,244,Failed to retrieve Sqm DeviceId: [0x80070002].

2025-09-02 14:45:02, Error CONX hwreqchk: ERROR,Windows::Compat::HardwareRequirements::HardwareRequirementSettings::GetSettings,94,Failed to get settings from endpoint [0x80070002].

2025-09-02 14:45:02, Error CONX hwreqchk: ERROR,ProcessJson,606,Unable to GetSettings [0x80070002]

2025-09-02 14:45:04, Error MOUPG CDlpResponseInstallLocation::ObtainData(122): Result = 0x8007000D
2025-09-02 14:45:04, Error MOUPG CDlpActionDiskManagement::GetDriveLetterFromUnattend(877): Result = 0x8007000D
2025-09-02 14:45:11, Error SP CNewSystem::PreInitialize: FveCheckSuspendBitLockerOnUpgrade failed: 0x8031004a, assuming auto-unlock is not supported
2025-09-02 14:45:11, Error [SetupHost.exe] (WinRE)WinReIsInstalledOnSystemPartitionInternal() Invalid parameters
2025-09-02 14:49:26, Error SP Setting language settings failed. Error: 0x80004005[gle=0x0000007a]
2025-09-02 14:50:11, Error SP BFSVC: AddBootmgrLast and PreserveBootOrder options are ignored when custom volume is specified[gle=0x00000717]
2025-09-02 14:51:33, Error SP CRelocateOS: Cannot move path C:\$WINDOWS.~BT\NewOS\Windows.old from Windows.NEW. Error: 0x000000B7
2025-09-02 14:51:33, Error SP Operation failed: Relocate OS from C:\$WINDOWS.~BT\NewOS to C:\. Error: 0x800700B7
2025-09-02 14:51:33, Error SP ExecuteOperations: Main operation execution failed. Error: 0x800700B7
2025-09-02 14:51:33, Error SP ExecuteOperations: Failed execution phase Finalize. Error: 0x800700B7
2025-09-02 14:51:33, Error MOUPG MoSetupPlatform: Finalize reported failure![gle=0x000000b7]
2025-09-02 14:51:33, Error MOUPG MoSetupPlatform: Using action error code: [0x800700B7][gle=0x000000b7]
2025-09-02 14:51:33, Error MOUPG CDlpActionFinalize::ExecuteSetupPlatformFinalize(1252): Result = 0x800700B7[gle=0x000000b7]
2025-09-02 14:51:33, Error MOUPG CDlpActionFinalize::ExecuteRoutine(527): Result = 0x800700B7[gle=0x000000b7]
2025-09-02 14:51:33, Error MOUPG CDlpActionImpl<class CDlpErrorImpl<class CDlpObjectInternalImpl<class CUnknownImpl<class IMoSetupDlpAction> > > >::Execute(503): Result = 0x800700B7
2025-09-02 14:51:33, Error MOUPG CDlpTask::ExecuteAction(3334): Result = 0x800700B7
2025-09-02 14:51:33, Error MOUPG CDlpTask::ExecuteActions(3487): Result = 0x800700B7
2025-09-02 14:51:33, Error MOUPG CDlpTask::Execute(1643): Result = 0x800700B7
2025-09-02 14:51:33, Error MOUPG CSetupManager::ExecuteTask(3118): Result = 0x800700B7
2025-09-02 14:51:33, Error MOUPG CSetupManager::ExecuteTask(3080): Result = 0x800700B7
2025-09-02 14:51:33, Error MOUPG CSetupManager::ExecuteInstallMode(1161): Result = 0x800700B7
2025-09-02 14:51:33, Error MOUPG CSetupManager::ExecuteDownlevelMode(611): Result = 0x800700B7
2025-09-02 14:51:33, Error MOUPG CSetupManager::GetDUSetupResults(8520): Result = 0x80070490
2025-09-02 14:51:34, Error Service DiagTrack is not available
2025-09-02 14:51:34, Error MOUPG CSetupManager::Execute(347): Result = 0x800700B7
2025-09-02 14:51:34, Error MOUPG CSetupHost::Execute(517): Result = 0x800700B7
 
What are your NTLite changes? Please attach your preset (after removing any user passwords or license key).
 
So I tried this time without making many changes in NTLite; it seems like the syspreped image is faulty, but the problem is, why isn't it working?

I have installed the software below in the machine and then syspreped it, seems like some app is creating a problem

BigFix Client
77 7z2501-x64.exe
Cato-Setup.msi
FalconSensor_Windows-7.28.20006.exe
FalconSensorMacOS-7.27.19806.pkg
FORCEPOINT-ONE-ENDPOINT-x64v24.0 ...
GlobalProtect64-6.3.3.msi
googlechromestandaloneenterprise64.msi
GoogleDriveSetup.exe
MBAM2.5_Client_hotfix.exe
MbamClientSetup.exe
MicrosoftEdgeEnterpriseX64.msi
O365ProPlusRetail.img
OktaVerifySetup-5.10.1.0-3c784ec.exe
 
The likely suspects would be one of the security products (Cato, FalconSensor, Forcepoint One, GlobalProtect, MBAM, Okta).

Build a test image without 7-Zip, Chrome, Google Drive, Edge, O365 since those apps are common and typically don't break sysprep. I would use divide and conquer: split your group of installed apps in half. Identify the broken half, and keep dividing until your find the culprit. This is faster than trying to guess which one by yourself.
 
I believe the issue is with sysprep, not sure what is causing it but as per the error message the issue is due to bitlocker and windows.old folder, which is creating the problem.

is there any other option apart from sysprep?
 
BitLocker or Device Encryption must be disabled, otherwise the image preserves the host's BitLocker state information. You can disable BitLocker manually while in sysprep, or use NTLite Settings (or an equivalent unattended file directive) to turn off BitLocker by default.

You already know how to delete Windows.old.
 
Finally, the OS was installed, but another issue has now arisen. When clicking sign-in, it's signing me out automatically
 

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BitLocker or Device Encryption must be disabled, otherwise the image preserves the host's BitLocker state information. You can disable BitLocker manually while in sysprep, or use NTLite Settings (or an equivalent unattended file directive) to turn off BitLocker by default.

You already know how to delete Windows.old.
Garlin, the issue with the login, as per the last image, is it due to default user? any suggestion is welcome.
 
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