Windows 7 crashes when perform a native boot from oversized dynamic VHDs

“When you try to perform a native boot from a virtual hard disk (VHD), the operation fails, and you receive the following Stop error message: ‘A problem has been detected and Windows has been shut down to prevent damage to your computer. An initialization failure occurred while attempting to boot from a VHD. The volume […]

“When you try to perform a native boot from a virtual hard disk (VHD), the operation fails, and you receive the following Stop error message: ‘A problem has been detected and Windows has been shut down to prevent damage to your computer. An initialization failure occurred while attempting to boot from a VHD. The volume that hosts the VHD does not have enough free space to expand the VHD. Stop: 0x00000136 (0x00000000, 0xc0000007f, 0x000000, 0x000000).’ The second parameter of the bug check is ‘0xc000007f - STATUS_DISK_FULL,’” Microsoft explained in KB2020922. "To resolve this issue, free up sufficient space on the volume that hosts the VHD so that the VHD can expand to its full size. If the dynamically expanding VHD is larger than the capacity of the volume, you must re-create the VHD as a fixed-size VHD at the appropriate size."