Getting "please reconfigure your system to contain only one windows partition"

Imaging team,

I'm using Image Assist for the first time on a VM(with my chosen OS and our software products are installed on it).
I chose "Create USB" option so that I can use the generated WIM on a tablet and test. My VM had 2 window partitions C and D. D is like a recovery.

I'm getting an error message on the last stage where it says I need to have only 1 windows partition.

I saw a property called "MaxDataPartitions" in ImageAssist.exe config where it had 1. So I changed it to 2. Yet I'm facing below issue. Please help.