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First thought on the top of my head is that it might be creating the users profile. BUT, is this a multi-user OS and it only happens for the first user's first logon, or all users' first logon? When you say fresh VM, is this a brand new persistant VM or a rebooted non-persistent VM (where the C:\users folder is blank on reboot)? Roaming, local Windows Profiles? Using UPM or other profile management?