I was faced with that issue today on a client side.

Trying to install an OS Image onto a laptop, The client would obtain a DHCP IP, would receive a TFTP Reply and the WinPE would download and start.

Now the issue was after obtaining the policy, it would say that “The task sequence failed to run because the packages could not be found on the distribution point”.

Well I checked that the package is updated on the distribution point, I checked that the Data Access tab is set to Copy the content to a package share on the DP as below


Well, I have also read it might be caused by the boundaries, so I checked

Now the thing was that the client have defined another site , and assigned the subnet I was booting from to this site. But this subnet was not defined to use a specific site server as a boundary.

So I went ahead and configured a IP Range as a boundary and added that to the Boundary Group and Voila, Computer booted.