VMware | How to create a VM from a Windows bootable USB flash drive

New Windows installation keeps asking you to log in Microsoft account and forcing you to connect network. This is overwhelming for creating a VM for testing purpose.

Using Rufus to create a bootable USB flash drive, it gives you the option to bypass these options.

How to install a Windows VM from a bootable USB flash drive that is created by Rufus?

(The following steps are based on a post on Broadcom website, refined according to my practice)

Installing Windows 10 in a virtual machine using Windows 10 USB drive (EFI) in VMware Workstation Pro using the Custom Install method:

1. Insert Windows bootable USB flash drive. Since no VM is running, it sure would connect to host, not VM.
2. Click Create a New Virtual Machine. Alternatively, navigate to File > New > Virtual Machine.
3. Select Custom (Advanced) and click Next.
4. Ensure that the hardware compatibility is set to Workstation 1x.x (the version of your VMware client version) Pro > Click Next
5. Select I will install the operating system later.
6. Ensure that Operating System is set to Microsoft Windows and Version is set to Windows 10 or Windows 10 x64, depending on whether it is 32bit or 64bit disc image.
7. Enter the virtual machine name.
8. Select the location where you want to store the virtual machine. You can choose to retain the default location displayed > Click Next
9. If you are installing Windows 11, it would ask you to choose from TPM related encryption options
10. Select EFI as Firmware type > Click Next
11. Specify the number of Processors and Cores you want to allocate to the virtual machine > Click Next
12. Specify the amount of memory (RAM) you want to allocate to the virtual machine > Click Next
13. Select the network type > Click Next
14. Select the I/O controller. It is recommended to use the default option > Click Next
15. Select Create a new Disk and click Next.
16. Specify a name for the virtual disk file and click Next.
17. Click Finish to save the virtual machine. The virtual machine is now created and added to the Workstation inventory.
18. Run the VM
19. Click on VM > Removable Devices and connect the Windows bootable USB flash drive to the virtual machine. The Windows bootable USB flash drive is now connecting to the running VM
20. Click on VM > Click on Send Control + Alt + Del. This resets the VM to boot again

Still asking you to sign in a Microsoft account?
Just disconnect your network then click Sign In button, it would let you create a local account.