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Hello,

I have tried to reproduce your scenario, with PowerShell, ran with administrative privileges:

Remove-Item -Force -Recurse "HKLM:\\Software\Cloudbase Solutions"
& C:\Windows\System32\Sysprep\sysprep.exe /generalize /oobe /shutdown /unattend:'C:\Program Files\Cloudbase Solutions\Cloudbase-Init\conf\Unattend.xml'

I have created an image from the instance, after I waited for the instance to complete the shutdown process. I did not get any errors with the newly spawned instanced from the created snapshot.

If possible, can you put in a pastebin the cloudbase-init logs, to further debug the issue? Moreover, are you doing some changes to the Unattend.xml?

Thanks.