How to Install Windows 10 on a VHD

Windows powers gaming, coding, and IT work in varying setups. With native VHD boot, you can launch Windows directly from a virtual disk (.vhd/.vhdx) without a virtual machine. IT teams use this for testing, dual-booting, and training.

Now, upgrading your Windows 10 VHD installation (Pro/Enterprise only) means moving to a newer version of Windows, like a feature update or Windows 11. This differs from routine updates, which deliver security without changing your OS version.

Due to its unique setup, standard Windows upgrades can fail or cause boot issues in a natively booted VHD. Here’s how to safely upgrade your Windows 10 VHD boot environment using specialized offline or in-VHD methods.

Step-by-step guide on how to update a native boot VHD

⚠️ Backup your data to ensure a safe revert if needed. 

Follow these steps to update your native boot VHD environment safely and effectively:

Step 1: Mount the VHD in Windows

1. Start booting your computer into a regular Windows installation (not the native VHD).
2. Press Win + R, then type diskmgmt.msc in the Run dialog box to open Disk Management.
3. Click Action > Attach VHD.
4. Browse to and select your .vhd or .vhdx file, then mount it.

NOTE: Do not assign a drive letter yet.

Step 2: Apply the update using DISM or offline setup

There are two methods available to do this step. Choose the best one that fits your comfort level and situation:

Method A: Using DISM and Windows setup

This method applies an offline update directly to the mounted VHD, which is ideal for controlled and scriptable environments:

NOTE: Before proceeding, you’ll need a Windows ISO, a disk image file (.iso) containing the full installation files for Windows. You can download this directly from Microsoft’s official website using the Windows Media Creation Tool.

1. 1. Click the search icon on the taskbar, then type PowerShell and select the Windows PowerShell app.
   2. Run this command to mount your Windows 10 ISO:

Mount-DiskImage -ImagePath "(Input path to your Windows 10 iso)"

1. 3. Identify the correct edition index with this command (Replace X:\ with the actual mounted drive of your VHD volume):

dism /Get-WimInfo /WimFile:X:\sources\install.wim

1. 4. Run the update setup (Replace X:\ with the actual mounted drive of your VHD volume):

setup.exe /Image:"X”:\" /Index:1 /Quiet /Compat IgnoreWarning /DynamicUpdate Disable

Method B: Boot into the VHD and update from Within

This involves booting directly into the VHD environment and performing an update as you would on a standard Windows installation:

1. 1. Reboot your computer, then select and boot directly into the VHD via the Boot Manager menu.
   2. Mount the Windows ISO file within your running virtual environment
   3. Run setup.exe from the mounted ISO and perform the standard update process.

IMPORTANT: This method CAN fail if the Windows installer detects issues with your bootloader or partition layout. Always test this thoroughly in non-production environments first.

Requirements & limitations for upgrading Windows on a VHD

When upgrading Windows installed on a VHD, there are specific requirements and constraints unique to native boot configurations to keep in mind:

Supported Windows Editions

• Supported: Windows 10 Pro, Enterprise, and Education editions support native boot VHD scenarios.
• Not Supported: Windows 10 Home Edition does not support native boot from VHD.

Update compatibility

• Upgrading between compatible editions (e.g., Windows 10 Pro to Windows 11 Pro) is fully supported, provided the VHD-installed Windows meets the target OS requirements.
• Hardware compatibility checks, such as TPM, Secure Boot, and CPU eligibility, are based on the system’s hardware, not the virtual hard disk itself.

Disk layout constraints

• Supported: Native boot VHD setups require using either fixed-size or dynamically expanding .vhdx files.
• Not Supported: Using differencing disks or placing VHD files on removable media (e.g., USB drives or external drives) is not supported and can cause update failures.

Backup recommendations

Creating reliable backups protects your data. This ensures you can safely revert if something goes wrong during the update. Follow these quick backup steps:

Back up the VHD/VHDX File with an external storage

Copy your .vhd or .vhdx file to external storage, like a portable drive or cloud service, for easy restoration if you encounter problems when upgrading your Windows. You can mount the VHD/VHDX file using Disk Management in Windows 10 to access or verify its contents.

Create a system image (Optional)

Use Windows’ built-in tools or third-party software to create a full system image of your host machine for comprehensive recovery. This captures your entire system, enabling comprehensive recovery if needed.

To create a system image:

• Go to Control Panel > System and Security > Backup and Restore.
• Select Create a system image from the left pane.

You can also use third-party solutions, like NinjaOne, to create a system backup.

Post-update tasks for native boot VHD in Windows 10

Performing these few post-update tasks is crucial to ensure system stability and functionality. These steps help maintain activation status, ensure integration services are up to date, and keep your boot configuration clean:

Reactivate Windows (if prompted)

Significant system changes, such as upgrading the OS or modifying hardware configurations, can sometimes cause Windows to require reactivation. If prompted:

1. Go to Settings > Update & Security > Activation.
2. If Windows is not activated, click on Troubleshoot.
3. Follow the on-screen instructions to complete the reactivation process.

Note: Starting with Windows Server 2016 and Windows 10, Integration Services are updated through Windows Update. You can learn more about this in How to Add or Remove a Physical Hard Disk for Hyper-V Virtual Machines.

Update boot configuration

You may need to update the boot configuration to ensure the system boots correctly, if you did the update by mounting the VHD from another Windows installation:

1. Press Win + X, then select Command Prompt (Admin).
2. Run the following command, replacing X: with the drive letter assigned to the updated VHD:

bcdboot X:\Windows

This command adds the necessary boot files to the system partition and creates a new boot entry.

Detach the VHD (if mounted from another OS)

After completing the update and ensuring everything functions correctly, it’s good practice to detach the VHD if it was mounted for update purposes:

1. Open Disk Management (diskmgmt.msc).
2. Locate the mounted VHD in the list of disks.
3. Right-click on the disk label (e.g., Disk 1) and select Detach VHD.
4. Confirm the detachment when prompted.

Detaching the VHD helps prevent accidental modifications and keeps your system organized.

Troubleshooting common issues

Issue: update fails with an error about an unsupported disk

This happens when your VHD file is on a different disk or is on a removable storage device, which Windows does not support. Ensure your VHD or VHDX file is either fixed-size or dynamically expanding and stored on a local internal drive.

Issue: “Windows cannot be installed to this disk” error

This error is related to the VHD’s partition style or compression status. Verify the partition style of your VHD, whether it is GPT or MBR, and ensure it aligns with your host system’s boot mode (UEFI or BIOS).

Also, confirm that the VHD file or volume isn’t compressed. If compressed, right-click the VHD file or volume, select Properties, and uncheck the compression option.

Issue: Boot failure after update

The VHD fails to boot after a successful update due to missing or corrupted boot files. To fix this, follow these steps:

1. Boot into another working Windows environment.
2. Mount the updated VHD, then open Command Prompt (Admin).
3. Run this command (replace X: with your mounted VHD’s drive letter):

bcdboot X:\Windows

This reinitializes the boot files and updates configurations. It will enable your VHD to boot correctly.

Simplifying your Windows 10 native boot VHD update

Windows keeps our daily workflows running smoothly, but upgrading a Windows 10 installation on a native boot VHD can present unique challenges.

Ensuring host compatibility, properly mounting your VHD, and selecting the correct update method help simplify this process. Always create reliable backups and verify your boot configuration afterward to avoid potential issues.

While native boot VHD updates require a few extra steps, the added flexibility makes it ideal for testing, dual-booting, or training scenarios. By following this guide carefully, you’ll confidently update your Windows environment with minimal hassle.