I was getting this error today after creating a new sql service template. It was slightly bizarre as if you checked the VM properties it had a DVD drive with the vmguest.iso injected and ready but the deployment still failed.
I had 2 disks on my first IDE chancel and the DVD and an additional Hard Disk on my second.
I moved the 2 data disks to the scsi channel updated the template and it worked after that….
slightly weird but working now!