I cannot restore any system image which was created in Windows 10 v1709 using Backup and Restore.

That is interesting. What was the size of the disk? I wonder if it was greater than 2 TB and a UEFI setup?

I also wonder if this problem is related to a system image problem from a few years ago. I remember that after I made a computer with a 6TB system drive and UEFI that it would work great but then if I tried to make a system image backup it would give the error, "There is not enough space to create the volume shadow copy on the storage location".

For the longest time it seemed that it was talking about the space on the designated drive that is getting the system image but it was actually referring to the Recovery System Partition of the original System Disk. I went and manually enlarged the Recovery System Partition with Acronis or something on one of my computers (but not this one) and then system image backup would work. But, I never did it on this computer that also has a 6 TB system drive. But, after a year or so it was able to make a system image on the computer that had not had the Recovery System Partition adjusted.

Perhaps there was a Windows Update that told the system image program to ignore the "available size of the Recovery System Partition on the system disk" however when it comes time to actually recreate the image there is a problem for a UEFI system disk that is larger than 2 TB and it does not see enough open space in the Recovery System Partition.

I never had to use System Image restore to see if enlarging the recovery system partition actually makes it work. (?)

Here is a link to the System Image problem that USED to occur and no longer does. This is for Windows 8 but I think that it was also for Windows 10

https://answers.microsoft.com/en-us/windows/forum/windows\_8-performance/cant-create-system-image-not-enough-disk-space/20113306-7c82-4709-8891-3a813e092eda?auth=1

Since I was getting the same problem on the windows insider preview 17025 I posted this problem also in the windows insider forum, I wanted to try the latest preview build, but I got this suggestion below from a windows insider user ( CrazyKats ) . Following his suggestion I could successfully run the restore on a new SSD and also on the original SSD after deleting all the existing partitions. The restore program reformatted and repartitioned the drive and restored the image that I had previously saved with 1709 Build 16299.214. 

In my case I did not have a third party AV, just windows defender and I did not disable it.

On DELL XPS8700 which is set in UEFI mode I disabled:

1. Secure boot.
2. Disabled Intel Virtualization in the advanced setting for the processor.
3. In the windows control panel power options I disabled Fast Startup

I checked Hyper-V feature in windows and it was not enabled.

I used the Windows 1709 Installation media advanced options to restore a windows image that I previously saved with Build 16299.214.

The restore completed without any error, I tried a few times with no problem.

I then changed the Bios options back to the original .

With secure boot enabled I tried to restore a few more times without problem.

At this point I'm not sure what fixed the original error 0x80042302, but everything works fine now on my DELL XPS 8700 running in UEFI mode.

Before these changes I was always getting 0x80042302 when format and repartition was checked.

I found out later that the reason it worked had nothing to do with disabling these options, but the restore started working with images created after Feb 1st, 2018 with build 16299.214, which apparently fixed the image backup problem. Older images created with 16299.192 or earlier still fail to restore with error 0x80042302.

CrazyKats replied on

There is no iso for 17093 unless you make your own

on another already updated PC.

Three things to try:

Turn off Secure Boot and Virtualization in BIOS,

Turn off Fast Start in Power options

and remove any 3rd party AV.

Yep, No question MS broke it and is waiting to see how many folks complain, if that. Regardless, very unprofessional. Has me yearning for the XP days when an ASR backup could be restored.

I tried a few more things,  the bug with the restore was definitely introduced with 1709. I reinstalled a 1703 on the same UEFI machine and  Windows Image Backup and Restore work fine also when I wipe out the existing partition and let the restore program reformat the disk or SSD.

I'm surprised that Microsoft customers are so passive and do not protest louder, this is a screw-up that should be easy for Microsoft to fix. 

I also tried to install Windows 10 Insider preview 17025  build 172020-1626 and it fails exactly the same way as 1709.

 You are correct, SIB stopped working in the 1709 version or least stopped working correctly. 

I have two computers at home so for me to use a 3rd party backup is not a problem. As long as the backup restores the computer without any glitches.

For Businesses it is a different story. They may have more than two computers to backup and restore. There are many Professional Backup programs made specifically for Businesses but they never give a price. You need to call to get a "Quote" which means it probably is going to be expensive.

I tried a few more things,  the bug with the restore was definitely introduced with 1709. I reinstalled a 1703 on the same UEFI machine and  Windows Image Backup and Restore work fine also when I wipe out the existing partition and let the restore program reformat the disk or SSD.

I'm surprised that Microsoft customers are so passive and do not protest louder, this is a screw-up that should be easy for Microsoft to fix. 

I also tried to install Windows 10 Insider preview 17025  build 172020-1626 and it fails exactly the same way as 1709.