Unable to install Windows from USB: "No images are available" error

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Symptoms

Unable to create a virtual machine using USB bootable flash drive.

Wizard boots in Windows but Windows Installer shows an error:

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Resolution

  1. Stop installation process.

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  2. Quit Parallels Desktop.

  3. Open Finder and check if Windows installation media mounted. If so, unmount it using Eject button.

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  4. Start Parallels Desktop > click on New
  5. Click Install Windows or another OS from DVD or image file, then click Continue.

  6. USB flash drive must be detected in Operating systems found list

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  7. Highlight USB source, click on Continue and proceed with the installation.

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