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Failed to set log directory. Some execution history may be lost. The system cannot find the file specified. (Error: 80070002; Source: Windows)

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SCCM Task Sequence during execution failed. Log file smsts.log shows following error message:

Failed to set log directory. Some execution history may be lost. The system cannot find the file specified. (Error: 80070002; Source: Windows)


This error message points to MS Support site:



As it is specified in the article it explains that the issue is caused by multiple restarts inside the Windows Software Updates.
In this case was another restart after finishing Windows Software Updates TS step:



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