Sysprep – Fatal error occurred while trying to sysprep the machine

This error shows that sysprep was run multiple times on the machine, please open a command prompt, type:slmgr /dlv to view how many times of remaining Windows Activation count. Generally speaking, to sysprep the image on a single computer for multiple times, you need to configure the Microsoft-Windows-Security-SPP |SkipRearm to 1 in the unattend.xml file. I am assuming whether you configure the Microsoft-Windows-Security-Licensing-SLC | SkipRearm to 1 instead of SPP, the SLC setting is deprecated and should not be used. 

As a work around of this problem, please type: regedit in the Start Search box to open Registry Editor, set the value of GeneralizationState under HKEY_LOCAL_MACHINE\SYSTEM\Setup\Status\SysprepStatus to 7, then run sysprep again.

If the same issue still persists, please unistall the MSDTC and Reinstall it, then try the sysprep.

To uninstall MSDTC :– msdtc -uninstall

To reinstall MSDTC :– msdtc –install

Source: technet.microsoft.com