Known issue: Sysprep fatal error due to April 25, 2022 Preview and May 10, 2022 Windows Updates

Issue description

SmartDeploy's engineering team is aware of an issue causing Sysprep failures for certain deployments of certain Windows 10 images. From our testing, this issue is not specific to SmartDeploy, occurring with images captured and applied directly with DISM in the Windows Assessment and Deployment Kit, and appears to be an unfortunate result of two faulty Windows Updates.

On the affected devices, Sysprep will fail when deploying the image.

If the user then Collects Logs, and browses within the log zip to C:\Windows\System32\Sysprep\Panther\Setupact.log, the following error message will appear in the log:

Error SYSPRP ActionPlatform::LaunchModule: Failure occurred while executing 'ClipCleanUpState' from C:\Windows\System32\clipc.dll; dwRet = 0xc002001b

Trigger criteria

This issue can occur on captured images that meet the following criteria:

  • OS versions: Windows 10 Version 20H2 or newer (confirmed through Windows 10 Version 21H2)
  • 11th Gen and later Intel® Core™ Processors
  • Certain AMD processors

From our testing, this error will occur reliably on any image captured from a reference VM with either of the following Windows Update packages installed:

April 25, 2022—KB5011831 (OS Builds 19042.1682, 19043.1682, and 19044.1682) Preview

May 10, 2022—KB5013942 (OS Builds 19042.1706, 19043.1706, and 19044.1706)
(standard/non-preview release of same update, KB5011831)


Microsoft released an out-of-band fix for this issue KB5015020.

But you can now simply Install the Windows 10 2022-06 cumulative update, KB5014699.

If your virtual reference machine has either of the KB's installed that cause this issue, you will need to download and install KB5014699 and re-capture your image in order to deploy to 11th Gen and later Intel® Core™ Processors and certain AMD processors.

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