Seems this has something to do with EWF... This from C:\Windows\Panther\setupact.log after that error occurs.
2016-06-21 14:51:14, Info [0x0f008b] SYSPRP RunRegistryDlls:Found entrypoint in registry at SOFTWARE\Microsoft\Windows\CurrentVersion\Setup\SysPrep\Specialize\{afc4e571-4b1d-095e-190d-477c783cd71b}; will try to launch 'C:\Windows\System32\ewfcfg.dll,EwfSysprepSpecialize'
2016-06-21 14:51:14, Info [0x0f0080] SYSPRP LaunchDll:Found 'C:\Windows\System32\ewfcfg.dll,EwfSysprepSpecialize'; executing it
2016-06-21 14:51:14, Info SYSPRP WFCFG: EwfSysprepSpecialize ---
2016-06-21 14:51:14, Info SYSPRP WFCFG: SMI volume data empty.
2016-06-21 14:51:14, Info SYSPRP WFCFG: Need default config: FALSE
2016-06-21 14:51:14, Info SYSPRP WFCFG: ConfigureEwf() Start.
2016-06-21 14:51:14, Info SYSPRP WFCFG: GetSMIParametersEx: ======== Examining: System\CurrentControlSet\Services\EWF\Cached ========
2016-06-21 14:51:14, Info SYSPRP WFCFG: GetSMIParametersEx: EwfMode = 1
2016-06-21 14:51:14, Info SYSPRP WFCFG: GetSMIParametersEx: Attempt to retrieve BootStatusPolicy failed, hr=0x80070002
2016-06-21 14:51:14, Info SYSPRP WFCFG: GetSMIParametersEx: Attempt to retrieve DisableDefragSvc failed with status=2
2016-06-21 14:51:14, Info SYSPRP WFCFG: GetSMIParametersEx: ProtectBcdPartition = 0
2016-06-21 14:51:14, Info SYSPRP WFCFG: GetSMIParametersEx: Key 1 , PVDisk = 0
2016-06-21 14:51:14, Info SYSPRP WFCFG: GetSMIParametersEx: Key 1 , PVPart = 1
2016-06-21 14:51:14, Info SYSPRP WFCFG: GetSMIParametersEx: Key 1 , EnableLazyWrite = 0
2016-06-21 14:51:14, Info SYSPRP WFCFG: GetSMIParametersEx: Key 1 , PVOptimize = 0
2016-06-21 14:51:14, Info SYSPRP WFCFG: Defragment Service is disabled.
2016-06-21 14:51:14, Info SYSPRP WFCFG: DisableDefragSvc success
2016-06-21 14:51:14, Info SYSPRP WFCFG: DeleteEwfPartitions: Skipping removable disk (diskNumber = 1)
2016-06-21 14:51:14, Info SYSPRP WFCFG: Disk #0 layout info:
2016-06-21 14:51:14, Info SYSPRP WFCFG: Disk #1 layout info:
2016-06-21 14:51:14, Info SYSPRP WFCFG: PRIMARY partition,start=0x0000000000100000, len=0x0000000744d00000, type= 12
2016-06-21 14:51:14, Info SYSPRP WFCFG: DeleteEwfPartitions: Skipping removable disk (diskNumber = 1)
2016-06-21 14:51:14, Info SYSPRP WFCFG: Failed to create EWF partition.
2016-06-21 14:51:14, Info SYSPRP WFCFG: ConfigureEwf() End, status = 0x80070057.
2016-06-21 14:51:14, Error [0x0f0082] SYSPRP LaunchDll:Failure occurred while executing 'C:\Windows\System32\ewfcfg.dll,EwfSysprepSpecialize', returned error code -2147024809
2016-06-21 14:51:14, Info IBS Callback_Specialize: Internal Providers Specialized Failed. System can't proceed to handle Internal Providers
2016-06-21 14:51:14, Info IBS Callback_Specialize: Specialize return: [-2147024809]
2016-06-21 14:51:14, Error [0x060435] IBS Callback_Specialize: An error occurred while either deciding if we need to specialize or while specializing; dwRet = 0x80070057
2016-06-21 14:51:14, Info [0x0640ae] IBSLIB PublishMessage: Publishing message [Windows Setup could not configure Windows to run on this computer's hardware.]
2016-06-21 14:51:30, Info [0x070042] DIAG CallBack_DiagnosticDataSend: Called with notification for Error published by ErrorHandler
2016-06-21 14:51:30, Info DIAG CallBack_DiagnosticDataSend: Setup was started from Phase 4. Disabling Diagnostics [DiagnosticDataSend] in this scenario
2016-06-21 14:51:30, Info [0x090095] PANTHR WdsExitImmediate called! Execution will stop, and the queue won't be saved.
2016-06-21 14:51:30, Info IBS Callback_Specialize: Exit.
2016-06-21 14:51:30, Info [0x09008c] PANTHR SeqExecute -- stopping, since WdsExitImmediate() was called
2016-06-21 14:51:30, Info [0x090086] PANTHR pWorkerThreadFunc -- Stopping
2016-06-21 14:51:30, Info [0x090086] PANTHR pWorkerThreadFunc -- Stopping
2016-06-21 14:51:30, Info [0x090086] PANTHR pWorkerThreadFunc -- Stopping
2016-06-21 14:51:30, Info PANTHR DeleteCriticalSection for pExecQueue->csLock;
2016-06-21 14:51:30, Info [0x0605a6] IBS Requested UI to hide the language and locale selection pages.
2016-06-21 14:51:30, Info [0x090081] PANTHR Destroying any unreferenced modules! (SEQ6)
2016-06-21 14:51:30, Info [0x0601d7] IBS InstallWindows:Error Type = 3211266
2016-06-21 14:51:30, Info [0x090009] PANTHR CBlackboard::Close: c:\windows\panther\setupinfo.