Unable to create machine catalog with error: "There are no master images associated with this machine catalog."
Exception: 

Citrix.Console.Models.Exceptions.ScriptException An error occurred while preparing the image.  at Citrix.Console.PowerShellSdk.ProvisioningSchemeService.BackgroundTasks.ProvisioningSchemeTask.WaitForProvisioningSchemeActionCompletion(Guid taskId, Action`1 actionResultsObtained)  at Citrix.Console.PowerShellSdk.ProvisioningSchemeService.BackgroundTasks.ProvisioningSchemeCreationTask.StartProvisioningAction()  at Citrix.Console.PowerShellSdk.ProvisioningSchemeService.BackgroundTasks.ProvisioningSchemeCreationTask.RunTask()  at Citrix.Console.PowerShellSdk.BackgroundTaskService.BackgroundTask.Task.Run()

    DesktopStudio_ErrorId : UnknownError
    ErrorCategory : NotSpecified
    ErrorID : FailedToCreateImagePreparationVm
    TaskErrorInformation : Terminated
    InternalErrorMessage : Value cannot be null.
    Parameter name: source Value cannot be null.
    Parameter name: source Value cannot be null.
    Parameter name: source
    DesktopStudio_PowerShellHistory : Create Machine Catalog 'Apps'

Configure Permissions as outlined in Citrix eDocs - VMware and virtual machine management.

Problem Cause

User account permissions to the Hypervisor are not configured correctly.