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If you encountered the “Windows cannot find the Microsoft software license terms” error when trying to install Windows on a Hyper_V or VMware virtual machine, read the instructions in this tutorial to fix the problem.
The error message “Windows cannot find Microsoft software license terms” usually appears when the Windows installation media is damaged or when the USB port to which the installation media is connected has problems.
In Hyper-V the error usually occurs when trying to install Windows with Dynamic Memory enabled, and in VMware when the “floppy drive” exists as a device in the VM configuration.
In this guide you will find detailed instructions on how to fix the Windows Setup error “Windows cannot find Microsoft software license terms” when trying to install Windows on Hyper-V or VMware hypervisor platforms.
How to FIX: “Windows Cannot find Microsoft software license terms” in Hyper-V.
Method 1. Disable Dynamic Memory in VM Settings.
1. Open the Virtual Machine settings and select Memory on the left pane.
2. Specify a standard amount of memory (e.g. 4096 MB), then uncheck the option “Enable Dynamic Memory” and click Apply > OK.
3. Now try, to install Windows again and if you receive the same error, proceed to method-2.
Method 2. Recreate VM but choose to Install OS later.
1.Delete the Virtual Machine you have created and also delete its files (virtual disk, etc.)
2. Create a new Virtual machine and do the following during the creation process:
a. In ‘Assign memory‘ options, specify a standard amount of RAM and uncheck the “Use Dynamic Memory for this virtual machine” checkbox.
b. In Installation options, select Install an operating system later and then click Next & Finish to create the virtual machine.
3. After creating the virtual machine, open its settings and do the following:
a. Select SCSI Controller on the left and on the right choose the DVD Drive and click Add.
b. Then select Image file, click Browse and select the Windows ISO file.
c. When done, click Apply > OK and proceed to Windows installation.
How to FIX: “Windows Cannot find Microsoft software license terms” in VMware.
Method 1. Remove the Floppy device.
1. Edit the Virtual Machine settings and remove the Floppy drive.
2. Now try, to install Windows again and if you receive the same error, proceed to method-2.
Method 2. Recreate Virtual Machine but choose to Install OS later.
1. Delete the Virtual Machine you have created and also delete its files (virtual disk, etc.)
2. Create a new virtual machine and do the following during the creation process:
a. At the first step of the “New Virtual Machine Wizard” choose “I will install the operating system later” and continue to next steps to setup the machine.
b. At the final step of the virtual machine wizard, select Customize Hardware.
c. Then select the New CD/DVD on the left pane, and on the right pane, select “Use ISO image file“, click Browse and select the Windows ISO file.
d. When done, click Close and then Finish to create the virtual machine.
3. Finally Start the virtual machine to install the operating system.
That’s it! Which method worked for you?
Let me know if this guide has helped you by leaving your comment about your experience. Please like and share this guide to help others.