I've tested the machine wihtout scanstate and it works fine... It seems that the recovery has issues on images with scanstate applied.... weird:
setuperr.log on C:\Windows\Panther:
2026-01-06 15:57:39, Error SP SetupPlatform: Unknown upgrade choice value: 1
2026-01-06 15:58:54, Error [0x0808fe] MIG Plugin {0b23c863-4410-4153-8733-a60c9b1990fb}: ApplyUserRegWithFilter::InstallLayoutOrTipUserReg failed for (0409:00000409:*), user: (.DEFAULT)
2026-01-06 15:59:14, Error [0x0808fe] MIG Plugin {0b23c863-4410-4153-8733-a60c9b1990fb}: TableTextServiceMig!RemoveObsoleteCHSHKLMRegkey - fail to open regkey (software\Microsoft\CTF\TIP\{E429B25A-E5D3-4D1F-9BE3-0C608477E3A1}\LanguageProfile\0x00000804) = 2
2026-01-06 15:59:14, Error [0x0808fe] MIG Plugin {0b23c863-4410-4153-8733-a60c9b1990fb}: TableTextServiceMig!ApplySuccess() remove HKLM Registries error
2026-01-06 15:59:15, Error [0x0808fe] MIG Plugin {ee036dc0-f9b7-4d2d-bb94-3dd3102c5804}: BRIDGEMIG: ParseRegistryIfBridgeExists: offline key (new) = 'System\Setup\Upgrade\Bridge'
2026-01-06 15:59:15, Error [0x0808fe] MIG Plugin {ee036dc0-f9b7-4d2d-bb94-3dd3102c5804}: BRIDGEMIG: ParseRegistryIfBridgeExists: query bridge presence key failed 0x139f, bridge present = 0
2026-01-06 15:59:15, Error [0x08038d] MIG Failure while calling IPostApply->ApplySuccess for Plugin={ServerPath="%SYSTEM32%\migration\hwvidmigplugin.dll", CLSID={28f2d4c8-eea0-4f7b-8b91-dabc0ed51d96}, ThreadingModel=Apartment, ExceptionHandling=Default}. Error: 0x800706BE
2026-01-06 15:59:15, Error SP Error READ, 0x000006BE while gathering/applying object: apply-success, Action,CMXEXmlPlugin,C:\$Windows.~BT\Work\MachineSpecific\Working\agentmgr\CCSIAgent,%SYSTEM32%\migration\hwvidmigplugin.dll,{28f2d4c8-eea0-4f7b-8b91-dabc0ed51d96},Apartment,Default. Will return 2[gle=0x000000cb]
2026-01-06 15:59:15, Error [0x0801c9] MIG CSystemService::Install couldn't CreateService edgeupdate (1073)[gle=0x00000431]
2026-01-06 15:59:15, Error [0x0801c9] MIG CSystemService::Install couldn't CreateService edgeupdatem (1073)[gle=0x00000431]
2026-01-06 15:59:15, Error [0x0801c9] MIG CSystemService::Install couldn't CreateService MicrosoftEdgeElevationService (1073)[gle=0x00000431]
2026-01-06 15:59:15, Error [0x0801c9] MIG CSystemService::Install couldn't CreateService CUCoSecurity (1073)[gle=0x00000431]
2026-01-06 15:59:16, Error [0x0808fe] MIG Plugin {0b23c863-4410-4153-8733-a60c9b1990fb}: ApplyUserRegWithFilter::InstallLayoutOrTipUserReg failed for (0409:00000409:*), user: (S-1-0-0)
2026-01-06 16:00:06, Error [0x0808fe] MIG Plugin {0b23c863-4410-4153-8733-a60c9b1990fb}: ApplyUserRegWithFilter::InstallLayoutOrTipUserReg failed for (0409:00000409:*), user: (.DEFAULT)
2026-01-06 16:00:14, Error [0x08038d] MIG Failure while calling IPostApply->ApplySuccess for Plugin={ServerPath="%windir%\system32\IasMigPlugin.dll", CLSID={6df2d9df-1294-4637-82d3-d53761ca2c11}, ThreadingModel=Apartment, ExceptionHandling=Default}. Error: 0x80010105
2026-01-06 16:00:14, Error SP Error READ, 0x80010105 while gathering/applying object: apply-success, Action,CMXEXmlPlugin,C:\$Windows.~BT\Work\MachineIndependent\Working\agentmgr\CCSIAgent,%windir%\system32\IasMigPlugin.dll,{6df2d9df-1294-4637-82d3-d53761ca2c11},Apartment,Default. Will return 2[gle=0x000000cb]
2026-01-06 16:00:16, Error [0x0808fe] MIG Plugin {0b23c863-4410-4153-8733-a60c9b1990fb}: TableTextServiceMig!RemoveObsoleteCHSHKLMRegkey - fail to open regkey (software\Microsoft\CTF\TIP\{E429B25A-E5D3-4D1F-9BE3-0C608477E3A1}\LanguageProfile\0x00000804) = 2
2026-01-06 16:00:16, Error [0x0808fe] MIG Plugin {0b23c863-4410-4153-8733-a60c9b1990fb}: TableTextServiceMig!ApplySuccess() remove HKLM Registries error
2026-01-06 16:00:20, Error [0x0808fe] MIG Plugin {0b23c863-4410-4153-8733-a60c9b1990fb}: ApplyUserRegWithFilter::InstallLayoutOrTipUserReg failed for (0409:00000409:*), user: (S-1-0-0)
2026-01-06 16:00:32, Error SppDeleteSnapshots failed. hr = 0x800401f0