I've been running into the same issue, and here's what worked for me. After some research and testing, it looks like the root cause is due a delay for the iLo mounted ISO to show up as a drive letter in WinPE. In my smsts.log, it showed the SCCM build app check for BOOT.WIM only on D drive (physical), but the mounted ISO was actually on E drive. By the time the ISO was properly mounted on E, the SCCM build app had already stopped. I modified the \windows\system32\winpeshl.ini file in BOOT.WIM to add a 10 second delay before it attempts to launch the SCCM build app, so the file now looks like this: [LaunchApps] %SYSTEMDRIVE%\sleep.exe, "10" %SYSTEMDRIVE%\sms\bin\i386\TsBootShell.exe sleep.exe is not normally on the build disc, it was something I added myself. Instead of sleep, you also simulate a delay with ping -n, or create a batch file that loops through checks for the existence of BOOT.WIM before TsBootShell is launched. Hope this helps! Edit - winpeshl.ini is picky when used with parameters, see this post here for more info.