When attempting to create a template machine, the following error is seen when trying to install the instant provisioning tools:
Floppy disk drive seems to be disabled. Instant Provisioning Service x64 requires the Floppy disk drive to be enabled. The setup will now abort
This may be seen because a Generation 2 Virtual Machine (VM) running on Windows Server 2012 R2 is in use and floppy drives cannot be added.
More details on the comparison of Gen 1 vs Gen 2 here: