When creating a machine catalog, MCSIO does not redirect the page file to the cache disk 

Removing the ImageManagementPrep_DoImagePreparation property in the DDC via Powershell or setting it to $true allows the prep stage to be performed.  Create/update catalogs after reenabling the prep stage.

Remove-ProvServiceConfigurationData -Name ImageManagementPrep_DoImagePreparation

Or

Set-ProvServiceConfigurationData -Name ImageManagementPrep_DoImagePreparation -Value $true 

Problem Cause

ImageManagementPrep_DoImagePreparation was set to $false.  This means the prep stage was disabled and that is the stage responsible for configuring MCSIO