Configuration Manager OSD Task Seqence has failed with the error code (0x80070002). Task Sequence failed with the error code 0x80070002 – this error very famous during the operating system deployment using SCCM. When you deploy the task sequence and when you boot the computer from the network by PXE, during the step Applying Operating System you encounter the Error Code 0x80070002. Also this error may appear at step Downloading SCCM Client.
To fix the issue Error Code 0x80070002, you must define the network access account. The Network Access account is used for OS deployment, client and software installation. This account is important because the computer receiving the operating system does not have a security context it can use to access content on the network.
To configure the Network Access Account, open the SCCM Console console, click on Administration, expand Overview, expand Site Configuration, click Sites, on the top ribbon click Configure Site Components, click Software Distribution.
Click on the tab Network Access Account, choose Specify the account that accesses network locations (by default the option is set to Use the computer account of Configuration Manager client). Click on the orange icon and add the user account that enough permissions to access the content which is required while deploying Operating System, click OK.
If error still persist do next. If you use HTTP protocol on Distribution Point – you must set check mark Allow clients to connect anonymously. Open the SCCM Console console, click on Administration, expand Overview, expand Site Configuration, click Sites and Site System Roles. Select server with DP, open Distribution Point Properties and set check mark Allow clients to connect anonymously, click OK.