This message appears during Sysprep on a Windows 7 client when the Rearm program has run more than 3 times in a single Windows image (see here).
It is possible to workaround the problem by adding the SkipRearm setting to the Generalize pass in your unattend XML file.
Not sure if there is anyway around this if you are using KMS as it affects the client count on the KMS host. :(
Mitch
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