Cannot create VM using .vhdx file - SCVMM 2012 R2

I installed SCVMM 2012 R2 with all updates and copied over all the templates and iso and images from the SCVMM 2012 SP1 Server. All the paths and shares are the same as on the former server. All the VM's and cluster comes up no problem.

However, when I try to create a VM from template with a .VHDX extension I get the error:

VMM cannot locate an available physical instance of the equivalence group for the virtual hard disk with ID:

With VHD files I can create a VM from template no problem. Any suggestions?

Thanks.