Windows 2012 R2 Guest - SysPrep - Template

[SystemEngineer]

Created a new VM with Windows 2012 R2. All Windows Update up to date as of March 2019.

Made a full clone of the VM (Clone #1) and started the clone no problem.

I sysprep'd the clone: sysprep /generalize /oobe /shutdown

Sysprep was successful and shutsdown.

I made another full clone of it (Clone #2). Snapshot it just in case. I started the Clone #2, starts no problem and goes through the initial OOBE. I turned Clone #2 off, reverted back to previous state, and deleted the snapshot.

I converted Clone #2 to a template.

I clone with link from Clone #2 template and it complains about "KVM virtualization configured but not available". I turned off the KVM virtualization. Tried again. Then it says "Error: Failed to run vncproxy."

The problem seems to persist only for Windows 2012 R2 vm. But not for Windows 2016.

I need to have Windows 2012 R2 vm because of Exchange Server 2013.

Hopefully someone can help.

 

[SystemEngineer]

Found the problem. For some reason, the processor on the HP BL465c Gen 5 ones, all of their CPU had the AMD Virtualization option disabled by default. Enabled it and it works.