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windows 2016 -- The application-specific permission settings do not grant Local Activation permission


I am installing cloudbase-init using automation on a windows2016 image. While the whole process seems working all right, I just noticed the VM created out of the base image got the cloudba-se-init service in automatic and stopped. I also noticed the VM reboots once before it gets ready for use. (Note: as the final step for the image creation is to start the cloubase-init service)

This is what I have found in the event viewer:

Log Name: System Source:
Microsoft-Windows-DistributedCOM Date: 11/14/2017 6:34:45 AM Event ID:
10016 Task Category: None Level:
Error Keywords: Classic User:
VM-12631\cloudbase-init Computer:
windows-2016 Description: The application-specific permission settings do not grant Local Activation permission for the COM Server application with CLSID {D63B10C5-BB46-4990-A94F-E40B9D520160} and APPID {9CA88EE3-ACB7-47C8-AFC4-AB702511C276} to the user WINDOWS-2016\cloudbase-init SID (S-1-5-21-1198788790-4189821438-4104815276-1000) from address LocalHost (Using LRPC) running in the application container Unavailable SID (Unavailable). This security permission can be modified using the Component Services administrative tool. Event Xml: <event xmlns=""> <system> <provider name="Microsoft-Windows-DistributedCOM" guid="{1B562E86-B7AA-4131-BADC-B6F3A001407E}" eventsourcename="DCOM"/> <eventid qualifiers="0">10016</eventid> <version>0</version> <level>2</level> <task>0</task> <opcode>0</opcode> <keywords>0x8080000000000000</keywords> <timecreated systemtime="2017-11-14T14:34:45.407722200Z"/> <eventrecordid>672</eventrecordid> <correlation/> <execution processid="644" threadid="684"/> <channel>System</channel> <computer>windows-2016</computer> <security userid="S-1-5-21-1198788790-4189821438-4104815276-1000"/> </system> <eventdata> <data name="param1">application-specific</data> <data name="param2">Local</data> <data name="param3">Activation</data> <data name="param4">{D63B10C5-BB46-4990-A94F-E40B9D520160}</data> <data name="param5">{9CA88EE3-ACB7-47C8-AFC4-AB702511C276}</data> <data name="param6">WINDOWS-2016</data> <data name="param7">cloudbase-init</data> <data name="param8">S-1-5-21-1198788790-4189821438-4104815276-1000</data> <data name="param9">LocalHost (Using LRPC)</data> <data name="param10">Unavailable</data> <data name="param11">Unavailable</data>
</eventdata> </event>

Any idea? I am failing to find a workaround on this and I would need some suggestions.

Many thanks