Sysprep fails when generalizing VM during sysprep cleanup

I'm trying to generalize an Azure VM image. When running sysprep, the following errors get logged error log

SYSPRP WinMain:Processing 'cleanup' external provider request. 2019-01-29 10:32:52, Info [0x0f006c]

SYSPRP RunExternalDlls:Running DLLs listed in registry for phase 3 2019-01-29 10:32:52, Info [0x0f008a]

SYSPRP RunRegistryDlls:Retrieved section name for this phase as Cleanup 2019-01-29 10:32:52, Info [0x0f008b]

SYSPRP RunRegistryDlls:Found entrypoint in registry at SOFTWARE\Microsoft\Windows\CurrentVersion\Setup\SysPrepExternal\Cleanup\4FC1DA7A-CF3F-11E8-A988-000D3A3BE068; will try to launch 'DscCore.dll,SysPrep_Cleanup' 2019-01-29 10:32:52, Info [0x0f0080]

SYSPRP LaunchDll:Found 'DscCore.dll,SysPrep_Cleanup'; executing it 2019-01-29 10:32:52, Error [0x0f0082] SYSPRP LaunchDll:Failure occurred while executing 'DscCore.dll,SysPrep_Cleanup', returned error code 0x2 2019-01-29 10:32:52, Error [0x0f0070]

SYSPRP RunExternalDlls:An error occurred while running registry sysprep DLLs, halting sysprep execution. dwRet = 0x2[gle=0x00000006] 2019-01-29 10:32:52, Error [0x0f00ae]

SYSPRP WinMain:Hit failure while processing sysprep cleanup external providers; hr = 0x80070002[gle=0x00000006]