When updating the gold .wim file used for OS imaging, you may encounter the following error when attempting to SYSPREP a system with the PolicyPak CSE 24.2.3799 or later installed.
The SYSPREP output may display an error similar to the following:
Expected image state is IMAGE_STATE_GENERALIZE_RESEAL_TO_OOBE.
Actual image state is IMAGE_STATE_Complete.
In setupcat.log you’ll find the following error.
Info SYSPRP Entering SysprepGeneralizeValidate (Appx) - validating whether all apps are also provisioned.
Error SYSPRP Package PPLPMSparsePackage_1.0.0.0_neutral__gd0ndz5rvp7t0 was installed for a user, but not
provisioned for all users. This package will not function properly in the sysprep image.
Error SYSPRP Failed to remove apps for the current user: 0x80073cf2.
Error SYSPRP Exit code of RemoveAllApps thread was 0x3cf2. PPLPMSparsePackage_1.0.0.0_neutral__gd0ndz5rvp7t0 is a UWP appx package recently added to support the Windows 11 context menu. However, it cannot be provisioned due to SYSPREP demands. If this package is absent, the Windows 11 modern menu will not contain PolicyPak commands. However, the classic context menu works as expected.
To fix the error please remove the LPM appx package prior to SYSPREP with the following PowerShell command:
Get-appxpackage *pplpm* | remove-appxpackage
At the first logon, Windows 11 will not have PolicyPak menus, but they should appear at the second logon.
Reference KB: