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You can't use the MLG School template if the site collection isn't the root collection in a web application
If the site collection is in the format http[s]://server/sites/sitecollectionname then you get a FileNotFound exception when you create a site. It appears in the sites list but you get the same error when you navigate to it.
The reason is that the master page url has been set incorrectly. If you programmatically change it to the correct value, then the site will display with no problem.
The offending code is in the master page setter component and probably needs to use server relative urls.