A fatal error occurred while trying to sysprep the machine

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This appears to be a problem with relation to the Windows 8.1 Metro Apps and I resolved by doing the following (NB. critical to observe the sysprep log file (setuperr.log);

  1. Take Snapshot
  2. Run Sysprep: sysprep /generalize /oobe /shutdown
  3. When the error occurs, check the error log and then query the problem package using PowerShell (insert name of package into the “”). Get-AppxPackage -AllUsers | Where Name -Like “”
  4. Once you have it run the following to remove the package; Get-AppxPackage -AllUsers | Where Name -Like “” | Remove-AppxPackage
  5. Repeat steps 3 and 4 until successful.

If you don’t care whatsoever for Metro Apps (which is the case in our environment) you could just run the following and remove all packages; Get-AppxPackage | Remove-AppxPackage