It sounds like you have set up the domain join during the specialize phase in your unattend.xml. Remove that part and have it auto join a workgroup. Then add an action under System configuration in your provisioning template to join the domain
Thanks for the input. What you just explained is how it is currently set up. The Join Domain action is in the Provisioning Template, not in the unattend.xml.
For some reason the ldprovision.exe is being run while the Windows setup is executing the c:\windows\system32\sysprep\sysprep.exe /oobe /generalize /reboot command, instead of the first Autologon.
As a workaround I've added a Wait action before my Join Domain action, so sysprep runs while the template is on the Wait action, the machine reboots from the sysprep and then the template continues after the autologon from the Wait action. If the Wait wasnt there it would try to join the domain while sysprep.exe is working and fails.
Anyone else experience something like this? Even if its some other actions besides Join Domain.
Also for some reason it seems like the part of the answer file where I define <NetworkLocation>Work</NetworkLocation> is not being applied. I have it within the oobeSystem section.