Windows 10 with the latest updates now appears to cause the SYSPREP to fail due to some of the installed apps. The error log points you to the offending items in the system32\sysprep\panther\setuperr.log file. I had to remove the packages one by one and SYSPREP would then fail at the next one in the list.
I only had 3 to remove to get SYSPREP working again using following PowerShell
Get-AppxPackage *candy* | Remove-AppxPackage
Get-AppxPackage *twitter* | Remove-AppxPackage
Get-AppxPackage *photos* | Remove-AppxPackage