Hi,
Thank you for posting your query in Microsoft Community.
One method you can try is to turn off and then turn on theWindows Fax & Scanservice. Doing so, is like removing the current installation, and replacing it with a new one. I suspect there is something amiss in the current installation.
Here is how:
Click "Start" ----> "Control Panel" -----> "Programs and Features" and in the left pane, click " Turn windows features on or off". Give the resulting box time to populate and the scroll down to "Print and Document Services" and expand it by clicking the "+" sign. uncheck the box next to "Windows Fax& Scan", and click "OK". Follow the prompts if any, and wait for the process to complete.
Reverse the process by checking the box, to reinstall Windows "Fax&Scan". Now try again to complete the task of setting up a new account.
Set up your computer to send and receive faxes
Hope this information is helpful. Please feel free to reply in case you face any other issues with Windows in future.