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VM template fails when using Guest OS Profile - error 13206

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I'm trying to setup a Private Cloud on my single host. Have added a stroagage fabric which is a file share from another host in the domain. I can create New VMs and they will show up in the fileshare, but when I try to create a VM template With a Guest OS Profile I get this error message rigth after I start. It fails on step 1.1 Sysprep Virtual machine.

Error (13206)
Virtual Machine Manager cannot locate the boot or system volume on virtual machine Server 2012 R2 2 gen. The resulting virtual machine might not start or operate properly.

If i try to create a VM template without the Guest OS Profile it works fine, anyone know what the issue could be?


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