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
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