Sysprep – Fatal error occurred while trying to sysprep the machine

This error shows that sysprep was run multiple times on the machine, please open a command prompt, type:slmgr /dlv to view how many times of remaining Windows Activation count. Generally speaking, to sysprep the image on a single computer for multiple times, you need to configure the Microsoft-Windows-Security-SPP |SkipRearm to 1 in the unattend.xml file. I am assuming whether you configure the Microsoft-Windows-Security-Licensing-SLC | SkipRearm to 1 instead of SPP, the SLC setting is deprecated and should not be used.

As a work around of this problem, please type: regedit in the Start Search box to open Registry Editor, set the value of GeneralizationState under HKEY_LOCAL_MACHINE\SYSTEM\Setup\Status\SysprepStatus to 7, then run sysprep again.

Source : https://social.technet.microsoft.com/Forums/windows/en-US/425bd101-8a87-488c-b2e2-9f2f8113a0d9/sysprep-fatal-error-occurred-while-trying-to-sysprep-the-machine?forum=w7itproinstall

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