Here are details of my setup – in fact, I started over from scratch to document my steps.
This seems to be a new problem occurring with Windows 10, version 1709

 

Install of new VMware guest for the purpose of being a template

  1. Create new VM, named it windows_10_enterprise_version_1703
  2. Remove floppy drive
  3. Uncheck networking (for install)
  4. Mount ISO and enable, click OK to save settings

Install of OS on the guest virtual machine

  1. Boot newly created VM (windows_10_enterprise_version_1703)
  2. Step through the installation until completion
  3. Complete language settings to arrive at Windows desktop
  4. Enable the ‘Administrator’ account as its disabled by default
  5. Log out of installation user (the account I named ‘install’)
  6. Log into the ‘Administrator’ account
  7. Enter control panel, user and delete the ‘install’ user account.
  8. Install VMWare tools, Reboot once
  9. Shutdown

 

Prepare VM to be a template

  1. Edit the VM settings
  2. Connect networking
  3. Disconnect CD Drive
  4. Click OK
  5. Convert VM to a Template

 

Customization Specification Setup

  1. Create new specification, (I named mine Windows Desktop – DHCP)
  2. Applied registration information
  3. Computer Name – Use the virtual machine name
  4. Windows License – Left this blank (unchecked include server licensing information)
  5. Administrator Password – Set password, choose the option to automatically login as Administrator
  6. Time Zone – Set my desired time zone
  7. Run Once – Left this blank (blank for now, later intend on applying KMS details)
  8. Network – Use standard network setting (DHCP)
  9. Workgroup or Domain – For now just Workgroup and left workgroup name as ‘WORKGROUP’
  10. Operating System Options – Generate New Security ID (SID)
  11. Ready to complete – Clicked OK

Deploying template

  1. Right-click on the template – New VM from the template
  2. Gave a simple name – TEST01
  3. Selected Datacenter, Selected Cluster
  4. Selected Storage
  5. Selected Options (Customize VM) and (Power on the virtual machine after creation)
  6. Selected ‘Windows Desktop – DHCP’ from customized guest OS options
  7. Clicked Next, then Finish and wait …

 

Where things get stuck

  1. After the first boot, the guest gets an IP address from the network
  2. Customization starts in the background and system reboots
  3. When the system resumes I arrive at the following screen
  4. The system customization never completes, and I find my VM’s stuck at the “Let’s start with region …” screen

And, I’ll update this as soon as I find a solution, but for now…  I’m stuck

Log Shared via Pastebin:  https://pastebin.com/ETpuLX3U

 

Update: March 18, 2018

I’ve had others also test this using the latest ISO for Windows 10 – en_windows_10_enterprise_version_1703_updated_march_2017_x86_dvd, they too now encounter this same issue.  So the problem seems to be with the build of Windows 10 that was released.

I am going to download another build from MSDN and see if there is a change.

 

Update: March 19, 2018

I was able to get this working by way of reinstalling Windows 10 using the following ISO build: en_windows_10_multi-edition_vl_version_1709_updated_sept_2017_x64_dvd

Was even able to apply Windows updates and redeploy without error.