By chance are you running Windows 10 1803? If so review General Availability Support for VMware Horizon with Windows 10 1803 Semi-Annual Channel (SAC) Guest OS (55796) and make sure you've applied Microsoft Windows KB4462933.
If that doesn't apply I would see if you can reproduce this with a new parent built from a Windows ISO. Apply the latest updates, VMware Tools and Horizon Agent only. Whenever we've encountered VMs booting to startup repair it's a result of anti-virus or some other filter driver.
Hi Ben, I applied the Windows KB you mentioned.
After that I see few vms were available stage, while few vms went to recovery state.
For brief time I see that it showed following error :
Unknown Hard Error : sihost.exe.
googling the error didnt give me much pointer, have you seen this before ?
I just came across the KB article. Reviewing the composer logs on both the linked clone and composer server should help. I'd suggest opening an SR to get support involved.