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Creating a template from VM in SCVMM 2012 R2 Fails with Error 13206

I have a Generation 2 Windows 2012 R2 VM in SCVMM 2012 R2 with RU8.  I am able to boot the VM without issue, but once i have it patched and run the template creation process for this VM i get the following error:

Error (13206) Virtual Machine Manager cannot locate the boot or system volume on virtual machine "VMNAME". The resulting virtual machine might not start or operate properly.

I have checked and the Boot order is SCSI 0,0, which should be correct. 


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