I am seeing a weird issue where the KMS count is not increasing above 2 so nothing is activating. These machines were sysprepped with the generalize and the rearm was set to 0 in the unattend. When you look at the actual client machines I am able to verify (slmgr.vbs /dli) that each machine has their own CMID and that they are pointing to the correct server for its KMS.  Any help on figuring out why these machines are not increasing the count is much appreciated. 

Hi,

You can check the suggestions in this thread below:

https://social.technet.microsoft.com/Forums/en-US/0246cee9-d931-4fd4-a9e8-fae8a555a9e1/kms-host-count-does-not-increment-and-office-2010-clients-report-activation-fails-because-count-is?forum=officesetupdeployprevious

Many users resolved the similar issue and their experience may be helpful to you.

If the issue persists, please use Office Client KMS activation diagnostic or Office KMS Host Activation diagnostic tool to troubleshoot the issue:

To use the Office Client KMS activation diagnostic tool

1. As a local administrator, log into any Office client that is unable to activate using KMS activation.
2. Go to Office Client KMS activation diagnostic tool and sign in to the Microsoft Support Diagnostics Self-Help portal with your Microsoft Account credentials.
3. On the New Session page, choose Office Client KMS activation diagnostic.
4. Enter a name in Session Name text box and then choose Create.
5. To start the analysis, choose Download.
6. When you are prompted, choose Run or Save File. If you choose Save File, you can later run the file from the folder where you saved it.
7. When prompted to select the computer on which to run the diagnostic, choose This Computer, and then choose Next. On the next page choose Start.
8. When the diagnostic displays an alert indicating a report has been saved, choose Open Report.
9. Review the details listed in the report Summary section, and then review the problems listed in the Issues Detected section and follow the recommendations provided under Recommended steps and related resources.

To use the Office KMS Host Activation diagnostic tool

1. As a local administrator, log into your Office KMS host computer.
2. Go to Office KMS Host Activation diagnostic tool and sign in to the Microsoft Support Diagnostics Self-Help portal with your Microsoft Account credentials.
3. On the New Session page, choose Office Client KMS Host Activation diagnostic.
4. Enter a name in Session Name text box and then choose Create.
5. To start the analysis, choose Download.
6. When you are prompted, choose Run or Save File. If you choose Save File, you can later run the file from the folder where you saved it.
7. When prompted to select the computer on which to run the diagnostic, choose This Computer, and then choose Next. On the next page choose Start.
8. A report is automatically generated and opened in your browser.
9. Review the information listed in the Summary section and then review the problems listed in the Details section. Follow the recommendations provided under Action needed or comment for the items flagged with Attention Required in the Result column

For your reference:

https://social.technet.microsoft.com/Forums/en-US/20d49042-e37b-4d44-a3f2-e092298bfa64/use-office-client-kms-activation-diagnostic-or-office-kms-host-activation-diagnostic-tool-to?forum=officeitpro

Regards,

Melon Chen
TechNet Community Su