I was trying to get more info about this also and found this discussion. Windows 11 sysprep - Microsoft Q&A
Looks like it has to do with CryptoSysPrep_Specialize.
Some users have said they re-created the image and it worked as long as you do not join it to the domain. Still looking for options to fix it without having to rebuild, but I may just rebuild it anyway just to clean up any misc. files left behind from previous installs.