Failed to set log directory. Some execution history may be lost. The system cannot find the file specified. (Error: 80070002; Source: Windows)

SCCM Task Sequence during execution failed. Log file smsts.log shows following error message:

Failed to set log directory. Some execution history may be lost. The system cannot find the file specified. (Error: 80070002; Source: Windows)

This error message points to MS Support site:

http://support.microsoft.com/kb/2894518

As it is specified in the article it explains that the issue is caused by multiple restarts inside the Windows Software Updates.
In this case was another restart after finishing Windows Software Updates TS step:

BitLocker encrypting commands for Fixed drives (non OS)

To encrypt manually Non OS - Fixed drive, in our case D: partition, these two command should be used:

manage-bde –on D: -RecoveryPassword

manage-bde –autounlock –enable D:

First command starts  encryption of D: partition and write Recovery password in AD.

Second command enables autounlock of D: partition. 

There is no need to wait encryption to finish to execute the second command.

To write Recovery password in AD requirement is to have GPO for BitLocker configured.