Machine Creation services could fail when creating a new Catalog with the following error message. I have seen this happening on a fresh XenDesktop 7 setup.
Clicking on error details will give you this
To fix this issue do the following:
On all the Desktop Delivery Controllers (DDC) open a Administrative PowerShell window and enter: Enable-wsmancredssp -Role Client –DelegateComputer *
say Yes (Y)to the prompt and hit enter. Ensure that the same is done on other DDCs if you have multiple brokers in the environment.
Now go back to the Studio and select Hosting node, select the Connection resource and click Test Resource
Ensure that the tests run successfully. try recreating the catalog and issue should go away.