The following procedure should resolve the issue:
1. Change boot/system disk from IDE to PVSCSI. To do that I installed VMWare tools and added a small PVSCSI disk as a 2-d disk. Then bring it online. Affter PVSCSI drivers are initialized, shutdown the VM and change system disk type to PVSCSI in the first (original) disk (originally it was IDE). After the VM comes online, delete 2nd disk (https://support.ravellosystems.com/hc/en-us/articles/207785148-VirtIO-driver-for-Windows-VMs).
2. Changed networking to static IP in both Ravello and inside the VM (DC/DNS server must have static IP).
3. Fixed a known issue with corruption in DISM repository. To do that link a CDROM with Win2012R2 ISO (e.g. D: drive letter), open Powershell with elevated admin privilege and run the following command:
DISM.EXE /Online /Cleanup-image /Restorehealth /source:WIM:D:\Sources\install.wim:1 /LimitAccess
It takes about 15-20 min to complete and then you’ll see the following output
After that you can install ADDS and DNS roles on the VM.