Fixed.
Thanks to vweevers and BakerCo
https://github.com/mitchellh/vagrant/issues/3869
Copy paste bsdtar.exe from
C:\HashiCorp\Vagrant\embedded\mingw\bin
to
C:\HashiCorp\Vagrant\embedded\gnuwin32\bin
or using a batch script should work, but I downloaded basic-bsdtar.exe from
here
http://sourceforge.net/projects/mingw/files/MinGW/Extension/bsdtar/basic-bsdtar-2.8.3-1/basic-bsdtar-2.8.3-1-mingw32-bin.zip/download
unzipped it, renamed it from basic-bsdtar.exe to bsdtar.exe and I put it in
C:\HashiCorp\Vagrant\embedded\gnuwin32\bin