SysPrepExternal failing

Hi Team,

I am not sure if this is the right place to post here but windows 2016 azure datacenter vms fail with the below error.

2020-06-01 04:10:46, Info [0x0f00ac] SYSPRP WinMain:Processing ‘cleanup’ external provider request.
2020-06-01 04:10:46, Info [0x0f006c] SYSPRP RunExternalDlls:Running DLLs listed in registry for phase 3
2020-06-01 04:10:46, Info [0x0f008a] SYSPRP RunRegistryDlls:Retrieved section name for this phase as Cleanup
2020-06-01 04:10:46, Info [0x0f008b] SYSPRP RunRegistryDlls:Found entrypoint in registry at SOFTWARE\Microsoft\Windows\CurrentVersion\Setup\SysPrepExternal\Cleanup\3DF6F0C2-A3BA-11EA-A80E-000D3A8B6877; will try to launch ‘DscCore.dll,SysPrep_Cleanup’
2020-06-01 04:10:47, Info [0x0f0080] SYSPRP LaunchDll:Found ‘DscCore.dll,SysPrep_Cleanup’; executing it
2020-06-01 04:10:47, Error [0x0f0082] SYSPRP LaunchDll:Failure occurred while executing ‘DscCore.dll,SysPrep_Cleanup’, returned error code 0x2
2020-06-01 04:10:47, Error [0x0f0070] SYSPRP RunExternalDlls:An error occurred while running registry sysprep DLLs, halting sysprep execution. dwRet = 0x2[gle=0x00000006]
2020-06-01 04:10:47, Error [0x0f00ae] SYSPRP WinMain:Hit failure while processing sysprep cleanup external providers; hr = 0x80070002[gle=0x00000006]

There is no other issue with the entire sysprep.
The current image from microsoft already has the below logged into the setupact.log.

2020-05-06 12:19:25, Error SYSPRP setupdigetclassdevs failed with error 0
2020-05-06 12:19:25, Error SYSPRP MRTGeneralize:107 - ERROR: Failed DeleteInstance AntiSpywareProduct.instanceGuid="{D68DDC3A-831F-4FAE-9E44-DA132C1ACF46}" hr=2147749904
2020-05-06 12:19:25, Error SYSPRP MRTGeneralize:116 - ERROR: Failed DeleteInstance AntiVirusProduct.instanceGuid="{D68DDC3A-831F-4FAE-9E44-DA132C1ACF46}" hr=2147749904