Recently I’ve had an issue in which Configuration Manager Task Sequence (TS) used for the Operating System Deployment (OSD) kept failing. When looking at the contect of the appropriate Smsts.log file, it turned out that it was failing with the 0x80070002 error code:
Failed to resolve the source for SMS PKGID=PKGID$, hr=0x80070002
When looking at numerous forum posts on this subject, in almost all cases it turned out to be network-related problem in a way that SCCM Client is not able to reach software distribution package on the distribution point. However, in my case this couldn’t have been the problem because Task Sequence was run from standalone bootable media (DVD-ROM) which contained all referenced software distribution files.
After spending a lot of time troubleshooting, it turned out that the problem was caused by the fact that DVD-ROM drive included in the physical server on which TS was running was not able to read dual-layered DVD-ROM media files. Complete TS had approximately 5 GB in size and couldn’t fit on single-layered media. That’s why dual-layered DVD-ROM media had to be used.
This just proved again that most obvious solution is often the last one taken into consideration.