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

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.

I agree but MS is not going to fix SIB since it is considered to be obsolete.

I just used EASEUS BACKUP HOME free version to restore my computer DISK/PARTITION back to the way it was when I created it on Feb. 2, 2018. It restored my Windows Drive as good as SIB. It was a little confusing and took a little longer but the results were very good. I checked all my old paid legacy programs and they all work as good as before and my Anti-Virus (which was the reason I restored the C:\ Drive) works as good as new. After this, I am going to delete all System Image Backup on my computer since I found out that the above mentioned software works as well at SIB. I also have Acronis as a backup or If I need to install my Image to a different drive. 

I made a Easeus Windows PE Flash drive which I have connected in a hub all the time. When I boot up, Windows gives me a choice (within 5 seconds) to continue to default Windows or EASEUS Backup.  This program is probably best used for home computers and not businesses, in my opinion. Easeus, I believe, has a business version.

I know that there are other products that may work, but they all have flaws.

Personally I used Macrium and it worked for me.

I had different problems with many other products I tried.

This is not a place for advertising third party products, but rather have a basic functionality of windows working. Millions of people made backups with the windows image backup, just to find out that the restore does not work at the time they need it most.

Also the third party products need a bootable media created which is customized for each different PC (based on winPE).

With the windows install media I could do the restore to any machine I was dealing with.

Microsoft developers need to fix this basic bug or they will look like complete morons and ruin the Microsoft market for windows.