Event 5963 and a "Block launching Windows Store apps with Windows Runtime API access from hosted content" error prevents an OOBE deployment in Windows 10

After you enable the "Computer Configuration\Administrative Templates\Windows Components\App runtime\Block launching Windows Store apps with Windows Runtime API access from hosted content" Group Policy Object (GPO) in Windows 10, version 1703 or a later version, the CloudExperienceHost app does not start.

As a result, Windows fails during an out-of-box experience (OOBE) deployment. When the failure occurs, you receive a "Just a moment" message, the computer restarts, and then you receive a "Why did my PC restart" message.

Additionally, the following Event 5963 entry is logged in the event log:

This issue occurs because the "Block launching Windows Store apps with Windows Runtime API access from hosted content" policy has the side effect of blocking Inbox apps, such as CloudExperienceHost, that are required during OOBE.

This policy should remain disabled in typical operating scenarios. The policy is intended to be enabled only under the recommendation and guidance of Microsoft Support.