FIX: A fatal error occurred while trying to sysprep machine

Tashreef Shareef
by Tashreef Shareef
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a fatal error occurred while trying to Sysprep the machine

The System Preparation tool is an essential part of the Windows OS and helps in duplicating, testing, and delivering new installations. However, while running the System Preparation Tool, you may encounter a fatal error occurred while trying to sysprep the machine error.

This error occurs if the Windows Software Licensing Rearm program has run more than three-time in a single Windows image.

If you are also troubled by this error, here are a couple of troubleshooting tips to help you resolve it in Windows 10.

How do I fix Sysprep’s fatal error?

1. Edit SkipRearm Key

ix a fatal error occurred while trying to Sysprep the machine

  1. Press Windows Key + R to open Run.
  2. Type regedit and click OK to open Registry Editor.
  3. In the Windows Registry Editor, navigate to the following location:
    HKEY_LOCAL_MACHINESOFTWAREMicrosoftWindows NTCurrentVersionSoftwareProtectionPlatform
  4. On the right pane, locate the SkipRearm key.
  5. Double-click on the SkipRearm key to open Properties.
  6. In the Value data field, enter 1 click OK.
  7. Close the Registry Editor and check if the error is resolved.

By editing the SkipRearam key, you can fix the Sysprep fatal error issue in Windows. Make sure you create a restore point before editing any registry keys.

If you can’t edit your Windows 10‘s registry, read this handy guide and find the quickest solutions to the issue.


Can’t access the Registry Editor? Things aren’t as scary as they seem. Check out this guide and solve the issue quickly.


2. Edit GeneralizationState and CleanupState keys

ix a fatal error occurred while trying to Sysprep the machine

  1. Press Windows Key + R to open Run.
  2. Type regedit and click OK to open Registry Editor.
  3. In the registry editor, navigate to the following location:
    HKEY_LOCAL_MACHINESYSTEMSetupStatusSysprepStatus
  4. In the right pane locate and double-click on GeneraliazationState key.
  5. In the Value data field, enter 7 and click OK.
  6. Next, locate and double-click the CleanupState key.
  7. In the Value data field, enter 2 and click OK.
  8. If you can’t find the CleanupState key, skip the steps.
  9. Run System Preparation Tool and check for any improvements.

Editing GenealizationState and CleanupState key and changing the values in the Value data field can help you fix errors related to System Preparation Tool.


3. Repair Windows 10 image

ix a fatal error occurred while trying to Sysprep the machine

  1. Press the Windows key to bring up the search bar.
  2. Type cmd.
  3. Right-click on Command Prompt and select Run as Administrator.
  4. In the command prompt, enter the following command and hit enter:
    DISM /Online /Cleanup-Image /CheckHealth
  5. The above command will perform a quick health check and detect if there is any data corruption that needs fixing.
  6. If any issues are detected, you can rebuild the Windows image using the following command:
    DISM /Online /Cleanup-Image /RestoreHealth
  7. The process may take a few minutes to complete.
  8. Upon completion, it will display a success message.
  9. Close the command prompt and start the System Preparation Tool.

If you’re having trouble accessing Command Prompt as an admin, then you better take a closer look at this guide.


It seems that everything is lost when DISM fails on Windows? Check out this quick guide and get rid of the worries.


4. Uninstall MSDTC

ix a fatal error occurred while trying to Sysprep the machine

  1. Click on Start and type cmd.
  2. Right-click on Command Prompt and select Run as Administrator.
  3. In the command prompt, type the following command and hit enter:
    msdtc -uninstall
  4. The above command will uninstall the server.
  5. To reinstall the service, type the following command and hit enter:
    msdtc -install
  6. Run System Preparation Tool and check for improvements.

The a fatal error occurred while trying to sysprep the machine error can occur due to file corruption. Follow all the steps in this article one by one to resolve the issue.

Don’t forget to leave any other questions or suggestions that you may have in the comments section below.

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