Fix: This user does not have the required permissions to run Setup

When you run the Windows 10 or 11 Setup (setup.exe) from the ISO or USB setup disk, the following error may appear:

This user does not have the required permissions to run Setup. Please run Setup elevated or with a different user that has the required permissions.

Also, creating a new local administrator account and running the setup may not help.

Cause

The built-in Administrators group (SID: S-1-5-32-544) must have the SeSecurityPrivilege privilege. Otherwise, the above error occurs when you run Windows 10 or 11 Setup from the ISO or USB. The privilege corresponds to the “Manage auditing and security log” setting in the Local Security Policy Editor.

Resolution

To resolve the setup error, fix the security privileges using the Local Security Policy Editor in Windows 10/11 Pro or higher.

Launch secpol.msc and go to:

Security Settings → Local Policies → User Rights Assignment.

Double-click “Manage auditing and security log”.

(It may show up empty, which causes the error when launching Windows setup.)

Click Add User or Group.

Select Object Types.

Enable the Groups checkbox, and click OK.

Type administrators and click Check Names.

It will resolve automatically to the [computername\group name] format.

Click OK.

Click OK.

The “Administrators” group has now been added to the “Manage auditing and security log” option.

Close the Local Security Policy editor and restart Windows.

You should be able to run Windows Setup now.

That’s it.