Hello,
I have built a script allowing for any user to go from an LAZ file format to a fully projected DEM. It works flawlessly (LAZ -> LAS -> DEM) until it gets to the projection portion. For some reason, the script does not allow for projection while using the Python Command Prompt and returns ERROR 000365, but as soon as I do a manual projection via ArcMap, I am allowed to project the raster using the same Geographic transformation available via the script and the Project Raster tool in ArcMap.
This is the Project Raster tool, in ArcMap, working without an issue with the same settings as what is on the script (Note the geographic transformation)