You can’t install Windows on a USB flash drive using Setup

When you try to reinstall Windows 10 or 11 or do an in-place upgrade using the ISO, USB setup disk, or Media Creation Tool, the following error may occur:

This PC doesn't currently meet Windows 10/11 system requirements:

Here's why:

You can't install Windows on a USB flash drive using Set-up.

Cause

The above error occurs due to the PortableOperatingSystem registry value. If this value is present and its data is set to 1, the setup assumes you are using a Windows To Go installation even if you are not.

To resolve this problem, change the PortableOperatingSystem value by editing the Windows registry.

Resolution

Delete or rename the “PortableOperatingSystem” registry value to resolve the issue.

1. Start the Registry Editor (regedit.exe)
2. Go to the following branch:

   HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Control

3. In the right pane, rename PortableOperatingSystem to Old.PortableOperatingSystem
4. Exit the Registry Editor.

Restart Windows and see if you can run the setup now.