So, this has been baffling me for a bit. Trying to run some prep tasks to package a machine automatically, the last step is to sysprep. On a high level, I run a script on the "orchestration" server ...
Microsoft has confirmed that Windows 10 version 22H2 may have a hard time completing preparations using Systeprep.exe after installing KB5032278. However, there is a way to bypass the problem.