When you try to install a fairly new or a server edition of Microsoft Windows on a VMware (vSphere, Workstation, Fusion, Player) virtual machine, you might get the following error:
"Windows cannot find the Microsoft Software License Terms. Make sure the installation sources are valid and restart the installation."
This will prevent the installation from taking place and the VM will be in a reboot loop.
The problem is caused by the VMware easy installation feature (when the product identifies the OS you are trying to install based on the installation media and tries to automate the installation wizard).
The solution is simply choosing the "I will install the operating system later." option when creating the VM. After the VM is created, you then edit its properties and load the installation media. The error will go away.
Source
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