This issue occurs if the SRD Creation Wizard used to create the SRD was run using the "Advanced" option or if it was run using the "Typical" option on a Windows 10 or Windows Server 2016 computer.

The SRD for Veritas System Recovery (VSR) is based on the Microsoft Windows Preinstallation Enviornment (WinPE).  The version of WinPE used for SRD creation depends on the creation option selected and the operating system on the computer where the SRD Creation Wizard is launched.

If the "Typical" option is selected when creating the SRD, the process uses the version of WinPE found in the Windows Recovery Environment on the computer.  If the SRD Creation Wizard is run using the Typical option on a Windows 10 or Windows Server 2016 computer, the WinPE version will be the Windows 10/2016 version.

If the "Advanced" option is selected when creating the SRD, the process uses WinPE from the Microsoft Windows Assessment and Deployment Kit (ADK) 10.  The WinPE version from Windows 10/2016.   

Per Microsoft documentation, Hyper-V in Windows Server 2008 R2 only supports guest operating systems through Windows Server 2012:
https://technet.microsoft.com/en-us/library/cc794868(v=ws.10).aspx

When a Hyper-V virtual machine tries to boot WinPE from Windows Server 2016 / Winodws 10 it causes the above crash as it is an unsupported operating system for a Hyper-V virtual machine for a Windows Server 2008 R2 Hyper-V host.

Create a new SRD disk using the SRD Creation Wizard with the "Typical" option on a computer running Windows 8.1, Windows Server 2012 R2 or earlier.  The SRD disk will use a WinPE version compatible with Hyper-V running on a Windows Server 2008 R2 host.

Your PC ran into a problem and needs to restart. You can restart.

Stop Code: Machine Check Exception