if you are using VMM and have experienced error 0x800704DD during either a new virtual machine creation (new-vm, v2v, or p2v) or during a virtual machine migration over the network (also known as a LAN migration using BITS), then this blog post is for you.
The actual exception code caused in this case is listed below for search engines to pick up :)
The VMM Job will fail with error: HostAgentFail (2912) ... and HRESULT: 0x800704DD
Checking for the description of this error using winrm yields:
>>winrm helpmsg 0x800704DD
The operation being requested was not performed because the user has not logged
on to the network. The specified service does not exist.
There is only one possible cause for this error.