Task Sequence Error Code 80070002 in ConfigMgr 2012

The OSD Task Sequence in ConfigMgr 2012 fails with error code 80070002.
Also you see the following errors in smsts.log:

Authentication failure - 401
Resending the request by setting the credentials on getting an unauthorized response
HTTP result: 401
Tried all the available http based locations. SMB based locations will be attempted now
!saSMBContentSources.empty(), HRESULT=80070002
Exit Code 2147942402

One possible solution is to configure a Network Service Account.
ConfigMgr Console -> Administration -> Site Operations -> Sites -> Your Site -> Configure Site Components -> Software Distribution -> Network Access Account

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