What could be causing this simple OS deployment task sequence to fail?

Please use the browser on any computer to:

http://SCCMDIST.MYDOMAIN.LOCAL/SMS_DP_SMSPKG$/WCO00009

It's probably needed during deployment, but not accessible. I bet you'll get a 401 error.

If it really isn't accessible, try to find out why. It it accessible with https instead? Then try to configure it in your settings before trying to deploy again.
Or maybe the file really isn't there? Look it up on the server. Because other files needed, WERE there, ex.

http://SCCMDIST.MYDOMAIN.LOCAL/SMS_DP_SMSPKG$/WCO00003

Trying http://SCCMDIST.MYDOMAIN.LOCAL/SMS_DP_SMSPKG$/WCO00009.      ApplyOperatingSystem      01-Feb-2022 2:55:08 PM      1032 (0x0408)
GetDirectoryListing() entered      ApplyOperatingSystem      01-Feb-2022 2:55:08 PM      1032 (0x0408)
Initializing HTTP transport.      ApplyOperatingSystem      01-Feb-2022 2:55:08 PM      1032 (0x0408)
Setting URL = http://SCCMDIST.MYDOMAIN.LOCAL/SMS_DP_SMSPKG$/WCO00009.      ApplyOperatingSystem      01-Feb-2022 2:55:08 PM      1032 (0x0408)
   Address=http://SCCMDIST.MYDOMAIN.LOCAL, Scheme=http, Object=/SMS_DP_SMSPKG$/WCO00009, Port=80.      ApplyOperatingSystem      01-Feb-2022 2:55:08 PM      1032 (0x0408)
WinHttp credentials set.      ApplyOperatingSystem      01-Feb-2022 2:55:08 PM      1032 (0x0408)
CLibSMSMessageWinHttpTransport::Send: WinHttpOpenRequest - URL: SCCMDIST.MYDOMAIN.LOCAL:80  PROPFIND /SMS_DP_SMSPKG$/WCO00009      ApplyOperatingSystem      01-Feb-2022 2:55:08 PM      1032 (0x0408)
Not in SSL.      ApplyOperatingSystem      01-Feb-2022 2:55:08 PM      1032 (0x0408)
Http response: 401 - Unauthorized      ApplyOperatingSystem      01-Feb-2022 2:55:08 PM      1032 (0x0408)
401 - Unsuccessful with anonymous access. Retrying with context credentials.      ApplyOperatingSystem      01-Feb-2022 2:55:08 PM      1032 (0x0408)
Using thread token for request.      ApplyOperatingSystem      01-Feb-2022 2:55:08 PM      1032 (0x0408)
Http response: 401 - Unauthorized      ApplyOperatingSystem      01-Feb-2022 2:55:08 PM      1032 (0x0408)
401 - Unsuccessful with context credentials. Retrying with supplied credentials.      ApplyOperatingSystem      01-Feb-2022 2:55:08 PM      1032 (0x0408)
Http response: 401 - Unauthorized      ApplyOperatingSystem      01-Feb-2022 2:55:08 PM      1032 (0x0408)
401 - Unsuccessful with supplied credentials.      ApplyOperatingSystem      01-Feb-2022 2:55:08 PM      1032 (0x0408)
401: Unsuccessful on all retries.      ApplyOperatingSystem      01-Feb-2022 2:55:08 PM      1032 (0x0408)

as i already stated in the other post

<![LOG[Apply(), HRESULT=80070002 (installimage.cpp,2112)]LOG]!><time="14:55:38.515+420" date="02-01-2022" component="ApplyOperatingSystem" context="" type="0" thread="1032" file="installimage.cpp:2112"> <![LOG[Installation of image 1 in package WCO00009 failed to complete..
The system cannot find the file specified. (Error: 80070002; Source: Windows)]LOG]!><time="14:55:38.515+420" date="02-01-2022" component="ApplyOperatingSystem" context="" type="3" thread="1032" file="installimage.cpp:2132">

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You likely have this ticked in your TS


if that tick box is ticked... you must go to your OS package and tick this


The tick box in the TS is effectively saying "make this TS a bit quicker by accessing the OS package via SMB"
The tick box on on the OS package is effectively saying "make this available via SMB"

Hello Hayes,
Currently I do not have either of those options selected.  Seems like it is a permissions issue somewhere.
Seems like it is a permissions issue somewhere.

It does prompt me for credentials when I try to browse to that address as Kimputer suggested.

Try to fill in any user or admin account you can think of. If you found out which account, try to include it in your deployment settings.
If nothing works, go to that servers IIS settings and disable authentication.

If I type in administrator credentials it does allow me to see the file and download.  I guess I am not sure where in the deployment setting for that permission is set.  I will continue to look. I will also try disabling authentication in IIS as a test.

have you not configured your network access account ?