This failure only occurs if the following conditions are all true:
- A customizations PPKG must be present on the HDD
- The installed customizations and the PPK must be single-instanced
- The recovery media must be created using "Create a recovery drive" and is BMR-capable (i.e. "Copy system files to the recovery drive" checkbox is selected)
- Reset (not BMR) must be initiated by booting from the recovery media and selecting "Troubleshoot" -> "Reset this PC" -> "Remove everything"