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Symptoms

Windows 10 Version 1607

When you try to start Microsoft Distributed Transaction Coordinator (MSDTC) service, the service does not start.

Windows Server 2016

Microsoft Distributed Transaction Coordinator (MSDTC) fails to auto-start. If you run “sc query msdtc” to see the status of MSDTC, the command returns the following output:

STATE equals “1 STOPPED” 

Cause

When you set up a new system, this problem occurs after you apply an image and run Sysprep if the Sysprep process does not correctly mark itself as completed. When this problem occurs, the following registry key is set:

HKLM\SOFTWARE\Microsoft\MSDTC\SysprepInProgress = 1

Resolution

To fix this issue, install Cumulative Update for Windows 10 Version 1607 and Windows Server 2016: December 9, 2016 (KB3201845).

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