Hi,
Unfortunately, this is a known issue.
Use the latest ISO/Media - 12/2025 or later, of Windows 11 24H2/25H2.
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I've been trying to in-place update windows 11 home because I wanted to try and get a somewhat clean install of the system files while keeping my personal stuff. It's also because I wanted to fix some potential file errors in one go like error 0xo0000005 when trying to open notification settings. However, I've tried the in-place update twice and I keep getting the error 0x8007042b - 0x2000d. I tried doing the generic fixes like closing background apps and disabling/uninstalling my antivirus, but none of it worked. I'll share the setupact log file I got from "C:$WINDOWS.~BT\Sources\Panther." The file is too big to put directly here, so i'll be inserting a link toward the file instead.
setupact file: https://www.mediafire.com/file/mqrn8ovg7d2a39z/setupact.log/file
Hi,
Unfortunately, this is a known issue.
Use the latest ISO/Media - 12/2025 or later, of Windows 11 24H2/25H2.
I just went through this error on my system, a Windows 11 24H2 Pro install, and it was a very temperamental issue. Doing an in-place Upgrade Install from ISO would fail, generating this error. However, I did manage to do a Repair Install, which completes, but doesn't apply any new updates.
When I went to use Disk Cleanup to remove the Windows.old directory, I found a driver folder set in Driverstore that even Disk Cleanup could not remove. Upon inspection, the actual driver folder and subfolder had some very tight security settings, and did not match the parent directories. (This was from an ASUS package) So I had to manually change the security settings to allow Admins to control the folders, and I was able to clean up what remained.
I bet this is what was throwing the error, since the security would not allow the folder to move, tho it would allow the contents to be copied.
Just a fyi, the new CU for 26100.5061 updates just fine, unlike the last one. (Aug 2025 CU)
Interesting. Thanks for the detailed info and your effort on this.
Before anything else, please make sure to back up your important files to an external drive or cloud. We’ll still aim for a non-destructive repair, but if all else fails, a reset or clean install may be required.
Here's what I can recommend you try
Step 1) Use SetupDiag to analyze the upgrade failure cause. Microsoft has an official tool that helps interpret setup failure logs. Download SetupDiag from here:
https://learn.microsoft.com/windows/deployment/upgrade/setupdiag
Run it and let it analyze the logs in C:$WINDOWS.~BT\Sources\Panther
Share what the tool reports. It often gives more specific error strings.
Step 2) Temporarily disable or remove anything that can interfere. Fully disable any third-party antivirus and uninstall if possible.
Unplug all unnecessary peripherals like USB drives, printers, webcams, etc.
Disable drive encryption (BitLocker) if enabled
Temporarily remove any secondary internal drives if present
Go to msconfig or System Configuration and do a Selective startup
Uncheck "Load startup items."
Onthe Services tab, check "Hide all Microsoft services," then click "Disable all."
Step 3) You can also try a custom installation instead
Since the in-place upgrade keeps failing.
Boot from the Windows 11 ISO. You can use USB or mount ISO from another Windows account.
Choose Custom Install and do not delete partitions
Select your primary system partition, usually C,: and proceed
It will create a Windows.old folder with your old files
You’ll need to reinstall apps, but can recover personal files from Windows.old
If SetupDiag reports a specific corrupted driver or component like an AV, GPU driver, or third-party DLL, that’s where we’ll focus next.
Let me know what SetupDiag says.
Thanks for reaching out. I am here to help. The error you’re seeing usually means that Windows Setup failed while trying to restore the original system before applying the new build. This is often caused by a corrupted user profile, background processes interfering during setup, or registry or permission issues.
To better understand your setup and avoid repeating anything you've already tried, please confirm the following:
Have you done an OS repair, reset, or clean install on this machine before?
While I wait for your answers, here are a few steps you can try:
Step 1) Press Windows + R, then enter the following commands one at a time:
cleanmgr /sageset:1
cleanmgr /sagerun:1
Delete temporary files, Windows Update leftovers, and previous installations, if any
Step 2) Open Command Prompt Admin and then run
DISM /Online /Cleanup-Image /RestoreHealth
sfc /scannow
Step 3) Create a new local admin account. This could be due to a corrupted user profile.
Create a new local admin user
Sign in to that user
Try the in-place upgrade again using that account
Step 4) Try the upgrade from ISO directly
Download the latest Windows 11 ISO from Microsoft
https://www.microsoft.com/software-download/windows11
Right-click the ISO > Mount > Run Setup.exe
Choose: “Keep personal files and apps.”
Let me know how it goes and send your answers to the questions above. We’ll keep working together until we get this sorted.
Please understand that our initial response may not always resolve the issue immediately. However, with your help and more detailed information, we can work together to find a solution.