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Check: https://blogs.technet.microsoft.com/configurationmgr/2017/01/10/support-tip-running-testdbupgrade-does-not-complete-and-logs-failed-to-create-process-of-setupwpf-exe-error/

Do you see In the ClientIDManagerStartup.log these errors<![LOG[GetRegistrationState failed (0x8009000b)]LOG]!> You need to add the these settings to your WriteFilter: C:\Windows\System32\Microsoft\Protect C:\ProgramData\Microsoft\Crypto And this to the register Filter: HKLM\SOFTWARE\Microsoft\SystemCertificates\SMS\Certificates I have tested and applied this to 400+ Thin Clients with Windows Embedded 7 Standard. (you could use Powershell to applied the WriteFilter) In advance Microsoft (with the windows embedded Updates problem) advised us to remove these settings from the WriteFilter: Resolution: Remove this rules fbwfmgr.exe /addexclusion C: "\windows\CCM" fbwfmgr.exe /addexclusion C: "\windows\ccmsetup" fbwfmgr.exe /addexclusion C: "\windows\ccmcache" fbwfmgr.exe /addexclusion C: "\windows\system32\Wbem" These folders are already Writefilter proof by design (since SCCM SP1) The SCCM Clients Handles this itself. By adding these to the filter you get very strange behavior. More info on above: http://blogs.technet.com/b/configmgrteam/archive/2012/11/26/managing-embedded-devices-with-write-filters-in-configuration-manager-service-pack-1.aspx

I can help you with that I had the exact same problem and solved it with a Microsoft case. Loose from that, Do you use Windows Updates on your thin Clients (with SCCM) ? By seeing your WriteFilter Exclusion Config that also has a problem and will fail. I post the solution later on (need to search the TechNet Forum Articles) The inactive Clients has to do with 2 exclusion your probably missing. The Windows Updates had to do with TO MANY exclusion. Could you post your complete Exclusion List?

You could make a Dummy Update Group, Download and Deploy the update to that group and it shouldn't come back in the next synchronization.

If you import the computer you can choose the device name you like. Be sure the mac address is correct and assign the computer to the collection that has the deployment tasksequence assigned to.

Dont forget the storage driver if needed.

"When I boot my PXE client I am getting to the flash screen, and I am getting a IP Address, but then my machine is rebooting." Do you have a ip address or dont you get a ip address after the pxe boot. ( F8 support enabled?)

Check your date and time. I have seen this behavior when the time is out of sync.