Hi there,
If you are getting this error when doing a "Refresh Scenario" image - check to see if you have a "Format and Partition Disk" task located in the "Refresh only" section under "Preinstall". If so once you disable it your sequence will be able to complete.
The below thread discusses the same issue and you can try out some troubleshooting steps from this and see if that helps you to sort the Issue.
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