Found a work around. Found one old image that works. Thanks for you all help

@bc601 There’s only one way to create groups via Host Management - that’s by selecting the hosts you want in the new group, then at the bottom of the page put a group name into the ‘Create new group’ field. Then click Update.

Also, you can add hosts to an existing group via the dropdown at the bottom of host management. You can also create new groups via Group Management.

@wayne-workman

Yes I did not activate the sysprep application. Once I activated it and recaptured the image. The problem was resolved.