How to properly run Sysprep

Sysprep is a powerful Microsoft tool used to prepare a Windows installation for cloning/deployment of a golden image.
The safest approach is to run Sysprep twice: first to enter OOBE without generalizing, and then a second time to generalize. 

Key Details

1. Never run Sysprep from the Command Prompt.
2. Always launch Sysprep using the graphical interface. 
3. Do not select “Generalize” during the first run. 
 
Procedure 

Step 1

Navigate to the Sysprep folder on the system: 
C:\Windows\System32\Sysprep 
Locate the file named sysprep.exe and double-click it to launch the Sysprep GUI.

Step 2
In the Sysprep window: 

• Set System Cleanup Action to: Enter System Out-of-Box Experience (OOBE) 
• Do NOT check the Generalize option 
• Set Shutdown Options to: Shutdown
• Click OK to start the process. 

Allow the system to complete the process and shut down.  Then, power the system back on.

 After going through the OOBE process, the system will update.

Step 3 
Navigate again to C:\Windows\System32\Sysprep 
Launch sysprep.exe from the GUI a second time. 

In the Sysprep window: 

• Set System Cleanup Action to: Enter System Out-of-Box Experience (OOBE) 
• CHECK the Generalize option 
• Set Shutdown Options to: Shutdown
• Click OK to start the process. 

 
After Sysprep completes, the system will shut down. The sysprep is now completed, and the system should have a unique UUID.