New PVS servers were installed and a new PVS farm created and configured.
Checking PVS Server configurations and PVS Server Advanced Properties it was observed that the I/O Burst size was configured to 45 Kbytes, the default size is 32 Kbytes.
Configuring burst size back to default value of 32 Kbytes and restarting the stream service allowed the PVS UEFI target devices to boot successfully and allowed the UEFI master target successfully run imaging wizard using option “Create a vdisk”
The UEFI bootstrap can only use the default value I/O Burst size of 32 Kbytes.
When configured to a higher burst value, the PVS UEFI firmware will not be able to read or write to a streamed vdisk, which will stop imaging tasks from working, and also stop PVS targets booting a vdisk.
General guidance is to use PVS servers with Server Advanced Properties configured to default values for all properties.
PVS Server Advanced Properties were all configured to default values, which set the I/O Burst size to the default value of 32 Kbytes.

PVS Server Advanced Properties -> Network -> I/O Burst Size default is 32 Kbytes. Setting the value higher will stop UEFI target devices booting.