FIX: "LTIApply: Path not found (76)" - building Hyper-V VM

I recently got an issue that I had fixed before but could not remember how ... better post it once and for all. 

When deploying an image on an Hyper-V VM with MDT 2012 Update 1 or MDT 2013, at the beginning of the process - in the WinPE stage - I got the "ZTI ERROR - Unhandled error returned by LTIApply: Path not found (76)"

After checking various logs - which are still located on the ramdisk at that stage of the sequence - I found in the Variable.dat  that the properties IsDesktop and IsVM where both set to True. This was also showing in the ZTIGather log.

Checking the ZTIGather.wsf it appears that this occurs because the script is using different methods to set the properties IsVM and IsDesktop.  The chassis type of the Hyper-V VMs is matching those of a Desktop, whilst Model and BIOS description version are also setting the property isVM to true.

 One work-around - involving modifying the customsettings.ini - is described in this technet forum post.

Another work-around, is to modify your task sequence to add a step that sets IsDesktop to False right before the "Format and Partition ... " steps.

Here is the step from the ts.xml:

"
      <step type="SMS_TaskSequence_SetVariableAction" name="HyperV variable set" description="" disable="false" continueOnError="false" successCodeList="0 3010">
        <defaultVarList>
          <variable name="VariableName" property="VariableName">ISDesktop</variable>
          <variable name="VariableValue" property="VariableValue">False</variable>
        </defaultVarList>
        <action>cscript.exe "%SCRIPTROOT%\ZTISetVariable.wsf"</action>
        <condition>
          <expression type="SMS_TaskSequence_WMIConditionExpression">
            <variable name="Namespace">root\cimv2</variable>
            <variable name="Query">SELECT * FROM Win32_ComputerSystem WHERE Model LIKE "%Virtual%"</variable>
          </expression>
        </condition>
      </step>
"

I hope this post will save you some time. Enjoy !!