VMware - Provisioning desktops fails with App-V

If you are trying to clone a Windows 7 template that has App-V installed and you get a View Composer agent initialization state error you can fix this problem easily by changing the startup type of the Application Virtualization Client service to Automatic (Delayed Start) in the template VM.

If the template is a XP then you have to set the Statup type to manual and enable it later via policy or script.