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How to Fix “Windows Cannot Find the Microsoft Software License Terms”.

When I attempted to install Windows 10 into a virtual machine to upgrade that virtual machine to Windows 11, I was met with the useless error message “Windows cannot find the Microsoft Software License Terms.” Check the installation sources and restart the installation.” After some tinkering, I was able to come up with a workable solution.

This error message, it turns out, means something completely different than what it says: there is something wrong with this computer.

This message is typically displayed when installing into a virtual machine and something is configured unusually for a Windows 10 or 11 computer. For example, here are some of the possible causes of your problem:

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Dynamic memory is enabled in Hyper-V.

This was the issue I was having, and turning off dynamic memory solved it immediately. See the instructions below for how to do so.

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The virtual machine does not have enough memory.

If you try to install Windows into a virtual machine that doesn’t have a lot of RAM, it may fail.

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There is a floppy drive in your VMware virtual machine.

Yes, Windows 10 dislikes floppy drives and may fail to install in a virtual machine if you have one.

Secure Boot Isn’t Enabled

You’ll want the secure boot to be enabled. For more information, please see the section below.

Create a Blank Virtual Machine and Try Again

Sometimes the default settings in the virtual machine software are incorrect, so you can manually create a virtual machine template with the correct settings, mount the ISO, and install it.

Something is wrong with your installation media

Attempt to download the ISO image again or use a different flash drive.

It’s possible that something else is causing this error, but these are the solutions we discovered while researching.

How to Disable Dynamic Memory in Hyper-V

  • Open the Hyper-V Manager, locate your virtual machine in the list, and access the settings by right-clicking or using the Actions pane on the right. Go down to Memory and uncheck the “Enable Dynamic Memory” option.
  • You’ll want to make sure you’ve given the VM enough RAM for Windows to function properly.
  • Close the dialog, restart your virtual machine, and it should begin working immediately.

How to Enable Hyper-V Secure Boot

  • Open the Hyper-V Manager and navigate to your virtual machine’s settings. Locate Security in the left-hand pane, and then check the box next to “Enable Secure Boot.”
  • This option should be checked by default, but manually creating a virtual machine template may result in it being unchecked.
  • At this point, you should be able to attach the ISO and complete the installation.
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Yvone Kendi
Yvone Kendi
Writer by heart. Lover of life and technology. Helping you with simple life hacks using technology. Contact me at [email protected]

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