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I just got off the phone with support and it appears that they knew exactly what to do. Here is the procedure that needs to be done on any packaging machine that faces the issue:
Power on provisioning machine , stop the Agent on the provisioning machine with
- net stop svservice
- net stop svdriver
Add a registry key to HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Services\svdriver\Parameters
- "OptimizationLevel" REG_DWORD 0
Restart the Agent with
- net start svdriver
- net start svervice
Restart PM ( At this stage you can take a snapshot of the provisioning machine so that it can be used in later as clean machine)