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Hello,
The error message mentions "Failed to wait for database engine to recover handle", which is a generic message indicating that SQL Server did not start when the setup program needed to run the configuration operation.
We can check the SQL Server error log in the path prompted to further determine the cause of the error.
If the log mentions an error related to a system disk sector size greater than 4 KB, see this article to troubleshoot the problem: Troubleshooting operating system disk sector size greater than 4 KB - SQL Server | Microsoft Learn
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