The "Bootable" legacy ISO you've used is in fact not bootable, it relies on CDROM emulation provided by BIOS. VMs don't usually do this sort of emulation. If you set the guest OS to something like ...
With Disk2Vhd, you can convert Windows 10 into a virtual system without much prior knowledge. The advantage of the freeware is that it’s started directly in the Windows installation to be virtualized.
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