Hello Bob Stubblebine,
You are correct that the ISO from the Microsoft Evaluation Center is blocked for in-place upgrades on licensed production servers; the installer detects the SKU mismatch and prevents the preservation of applications and settings to avoid converting a production license into a time-limited evaluation version. However, the more critical obstacle you are facing is the upgrade path itself. Microsoft does not support a direct in-place upgrade from Windows Server 2016 to Windows Server 2025. The supported upgrade logic typically extends to the previous two versions (N-2), meaning you can only upgrade to Windows Server 2025 directly from Windows Server 2022 or Windows Server 2019.
To achieve your goal of running Server 2025 on that machine, you must perform a "double-hop" upgrade. You will first need to upgrade the 2016 instance to Windows Server 2022 (or 2019), and once that is complete and stable, perform a second upgrade to Windows Server 2025. Alternatively, since you are already managing a migration scenario, the technically superior approach—which avoids the accumulated registry bloat and potential instability of two consecutive OS upgrades—is to build a fresh Windows Server 2025 VM on your new host and migrate the roles and data (using Storage Migration Service or role-specific tools) rather than upgrading the OS in place.
Regarding the actual ISO download, you cannot use public links for production upgrades. You must obtain the "bits" (non-evaluation ISO) from the Microsoft 365 Admin Center (under Billing > Your Products > Volume Licensing) if you are a Volume License customer, or through the Visual Studio Subscription portal if this is for development/testing. If you purchased a retail license, the link would be in your purchase confirmation or the specific vendor portal. Only the proper Volume or Retail ISO will present the option to "Keep personal files and apps" during the setup process for the supported 2016-to-2022 and 2022-to-2025 paths.
I hope you've found something useful here. If it helps you get more insight into the issue, it's appreciated to accept the answer. Should you have more questions, feel free to leave a message. Have a nice day!
VP