This error appears when the Litetouch script is run under user account instead of an administrator account.
To workaround this error, simply create a .bat file in the root of your Deployment Share to map the z: drive and call the Litetouch.wsf script. .Bat files can be Right-Clicked and “Run as Administrator”. 
what a big help.
thanks a lot!!!
It worked for , its strange error though , i mean it does nto make any sense
Thanks a ton 🙂
Still solving problems – thanks a ton!
very good solution! simply! working!!!
Thanks so much for this. It solved a similar problem where the VM would hang at the “Processing Bootstrap Settings” upon running litetouch.wsf with Windows 10.
Figured out pretty quick where my issue was thanks to you. My share permissions on my deployment share were set to Everyone:Read Only. Since lowest permissions always win… I owe you a beer. Thanks for this. Also, I like how verbose it is.
No problem, I’m glad it helped!