Of late, many users are seeing the error
0xc0370106 when starting the Windows Sandbox. And, enabling or reinstalling Hyper-V, clean installing Windows using the latest ISO, running the DISM tool to restore missing files don’t fix the problem. Apparently, one of the updates (probably the Intel Microcode update KB4497165 as per Born’s site.) may be causing the issue, but it’s unconfirmed by Microsoft. Here is the full error message verbatim:
Windows Sandbox failed to start.
Error 0xc0370106. The virtual machine or container exited unexpectedly.
Would you like to submit feedback about this issue?
Microsoft seems to be aware of the Windows Sandbox error 0xc0370106 (ERROR_VMCOMPUTE_UNEXPECTED_EXIT) and they already have a fix which will be rolled out in the upcoming Cumulative Update. Redditor u/debharad, who introduced himself as a Microsoft engineer with the Windows Sandbox team, posted this on Reddit.
Thanks for reporting the issue. I’m an engineer on the Sandbox feature. We are aware of the issue and are working on servicing a fix asap. (July 04, 2019)
We have a fix. We are trying to get it out to customers within the next month. (July 11, 2019)
So, the users may need to bear with this issue till the next Cumulative Update is rolled out. Troubleshooting this issue (by users) may be futile.
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About the author
Ramesh Srinivasan founded Winhelponline.com back in 2005. He is passionate about Microsoft technologies and he has been a Microsoft Most Valuable Professional (MVP) for 10 consecutive years from 2003 to 2012.