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Windows 2016 - cloudbase error - device not ready

I see a few posts for this issue, with no answers.

2016 Template on VMmware 6.7. I have a local user named "cloudbase" created and set as a local administrator with logon as a service rights.

Here's the cloudbase-init.log: 2020-07-07 23:00:30.230 2012 DEBUG cloudbaseinit.osutils.windows [-] Creating logon session for user: True\cloudbase createuserlogon_session C:\Program Files\Cloudbase Solutions\Cloudbase-Init\Python\lib\site-packages\cloudbaseinit\osutils\windows.py:649

2020-07-07 23:00:32.511 2012 ERROR cloudbaseinit.plugins.windows.createuser [-] Cannot create a user logon session for user: "cloudbase": cloudbaseinit.exception.WindowsCloudbaseInitException: Cannot load user profile: 'The device is not ready.'

2020-07-07 23:00:32.511 2012 ERROR cloudbaseinit.plugins.windows.createuser Traceback (most recent call last): 2020-07-07 23:00:32.511 2012 ERROR cloudbaseinit.plugins.windows.createuser File "C:\Program Files\Cloudbase Solutions\Cloudbase-Init\Python\lib\site-packages\cloudbaseinit\plugins\windows\createuser.py", line 32, in createuserlogon 2020-07-07 23:00:32.511 2012 ERROR cloudbaseinit.plugins.windows.createuser True) 2020-07-07 23:00:32.511 2012 ERROR cloudbaseinit.plugins.windows.createuser File "C:\Program Files\Cloudbase Solutions\Cloudbase-Init\Python\lib\site-packages\cloudbaseinit\osutils\windows.py", line 670, in createuserlogonsession 2020-07-07 23:00:32.511 2012 ERROR cloudbaseinit.plugins.windows.createuser "Cannot load user profile: %r") 2020-07-07 23:00:32.511 2012 ERROR cloudbaseinit.plugins.windows.createuser cloudbaseinit.exception.WindowsCloudbaseInitException: Cannot load user profile: 'The device is not ready.' 2020-07-07 23:00:32.511 2012 ERROR cloudbaseinit.plugins.windows.createuser 2020-07-07 23:00:32.527 2012 INFO cloudbaseinit.init [-] Executing plugin 'SetUserPasswordPlugin' 2020-07-07 23:00:32.527 2012 DEBUG cloudbaseinit.utils.classloader [-] Loading class 'cloudbaseinit.osutils.windows.WindowsUtils' load_class C:\Program Files\Cloudbase Solutions\Cloudbase-Init\Python\lib\site-packages\cloudbaseinit\utils\classloader.py:27

But then, its able to set the password for the cloudbase account?

2020-07-07 23:00:32.527 2012 DEBUG cloudbaseinit.plugins.common.setuserpassword [-] Generating a random user password setpassword C:\Program Files\Cloudbase Solutions\Cloudbase-Init\Python\lib\site-packages\cloudbaseinit\plugins\common\setuserpassword.py:87 2020-07-07 23:00:32.527 2012 INFO cloudbaseinit.plugins.common.setuserpassword [-] Password succesfully updated for user cloudbase

I did login with the account before sysprep to validate the account logon.

Thanks for any input!