Windows 10, the preeminent operating system for computers, often gives users headaches. For example, it is well known that installing Windows 10 isn’t always smooth sailing. Sometimes, the process gets interrupted by some random error, which leaves the user scratching their head trying to figure out what happened.

As it turns out, Windows 11 is also not exempt from such issues. Many users trying to upgrade to the latest operating system are experiencing identical Windows 11 installation errors.

One of these annoying errors is the one with the code 0x8007025D. Also known as the “Windows cannot install required files” error, it causes many users to slam down the computer lid in frustration.

The error usually appears when a clean Windows 10 installation is well underway but before it crosses a certain irreversible threshold. The most annoying aspect of this error is that a clean installation means there is no OS on the PC to boot back into after running into the error. Thus, the user is stuck retrying the process, often in vain.

If you have been facing the issue or know someone who has, we can help you. This guide explains what the error is and why it happens. More importantly, we will provide you with multiple steps to resolve the issue so your Windows 10 installation can be successful.

What Does the Error Code 0x8007025D Mean?

The 0x8007025D Windows Setup error is also known as the “The installation was canceled” error. Many users have been getting this error recently when doing a clean installation of Windows 10. Among those who got this error, the majority was trying to install Windows 10 cleanly via a USB flash drive. This is to say that this error is linked to USB.

However, it also happens when updating Windows 10 to a newer feature build or upgrading Windows from 7 or 8.1 to 10 through a bootable drive. After the installation begins, but before most of the Windows files have been copied to the PC, the process suddenly stops and displays a white background with the following error message:

The installation was canceled

Any changes made to your computer won’t be saved.

Windows Setup

Windows cannot install required files. Make sure all files required for installation are available, and restart the installation. Error code: 0x8007025D

Going by an article by Windows support, the error code 0x8007025D stands for ERROR_BAD_COMPRESSION_BUFFER.

We won’t bore you with the technical jargon. Suffice it to say that this error signifies that an error occurred somewhere during the decoding of the installation data, forcing the process to stop.

But why does the 0x8007025D error occur – and especially during Windows 10 installation via a bootable USB drive? There are several possible reasons, which are briefly explained below:

  1. Corrupt installation file. If any file in the image is corrupt, this can cause the installation process to be interrupted. Windows Setup may find it impossible to decode some files, thus causing this error.
  2. Bad USB drive. The bootable device itself might be corrupt. There may be an unreadable or bad sector, which means the data stored in that sector cannot be read.
  3. Bad HDD or SSD sector. Just as the issue may lie with your USB device, your internal storage device may also have problems. If there is a bad sector on your drive, Windows Setup may not be able to copy the necessary files to it, leading to errors like this one.
  4. Damaged or Corrupt RAM. One of the advantages of a clean Windows 10 installation is that it doesn’t compete with other programs for memory space. Since there is nothing on the machine, not even an OS, the installation can have all the system memory to itself. However, if the memory is bad or damaged in some way, it can render this benefit useless. In such a scenario, Windows Setup stops and throws the 0x8007025D error.

How to Fix the Error Code 0x8007025D in Windows 10

The rest of this guide deals with how to fix the “Windows cannot install required files” error. You may have tried some of the fixes described here before, so you can simply jump to whichever solution you think is likely to work for you.

Check Your Connected Devices

The first rule of installing anything on a computer is to make sure that all possible causes of interference are removed. These include all connected peripheral devices. Be they extra USB sticks or Internet cables, try removing them all before you redo the installation.

If you are installing your OS from a bootable device, Windows copies all the files from the USB flash drive or disk to the computer and then continues the installation process from there. If the 0x8007025D problem only appears after a certain advanced stage of the installation, you may unplug your USB drive and see what happens. Chances are it isn’t needed anymore and the rest of the installation process will proceed without a hitch.

Try Again After Some Time

The second rule of installing anything on a computer is patience. Patience takes many forms here. It may be waiting a long time for the installation to be completed without abruptly canceling it or thinking the process has been stuck. Another form is to attempt it again if it fails the first time.

The 0x8007025D error may just be a glitch that isn’t linked to any big underlying issue. A reboot and another attempt might be all that is needed to successfully install Windows.

So, if you get the error during your first try, don’t be discouraged. Give the installation process another go before you delve into the rest of the fixes given in this guide.

Run the Windows Update Troubleshooter

If you are still looking for how to fix the “Windows cannot install required files” issue in Windows 10 after trying the above methods, the Windows Update Troubleshooter can help. You can only run this troubleshooter if you are merely updating Windows with a feature build rather than doing a clean install.

Finding and using the Update Troubleshooter in Windows 10 isn’t hard. Just follow these steps:

  1. From your desktop, click the Start menu icon. Click the Gear icon and select Settings.
  2. In the Settings window, select Update & Security.
  3. On the Update & Security screen, switch to the Troubleshoot tab.
  4. In the right pane of the Troubleshoot screen, scroll down and select Windows Update.
  5. In the Windows Update tab, click Run the Troubleshooter.

If you’re seeing the error while trying to run a feature update on Windows 11, these steps will help:

  1. From your desktop, click the Start menu icon. Click the Gear icon and select Settings.
  2. When the Settings window opens, scroll down under the System page and click on Troubleshoot.
  1. Click on the Other Troubleshooters option when you see the System > Troubleshoot page.
  1. Next, click on the Run button next to Windows Update once the System > Troubleshoot > Other Troubleshooters page appears.

The Windows Update Troubleshooter will launch and try to figure out what the problem is. After it is done with the scanning, pay attention to whatever recommendation it makes and follow it.

Reduce the Size of Your System Partition

The 0x8007025D error usually occurs during a clean installation. During the installation, there comes a stage when you select the partition you want to install Windows on. The ideal Windows 10 installation space needed is no more than 20 GB while Windows 11 requires at least 64 GB of free storage.

Of course, the system partition is usually way larger than that. However, if you keep getting installation errors no matter what you do, you can try reducing the size of your installation partition to around 125 GB. The larger the size of the partition is, the higher the chance that the space you are copying the OS to is corrupted.

As such, reducing the installation partition’s size is one way to get rid of the 0x8007025D error during Windows 10 installation. This option isn’t available if you are installing a feature build on an existing installation. However, you get a chance to configure the install partition during a completely clean install using bootable media.

On the “Where do you want to install Windows?” screen, after choosing Custom installation, select your installation partition and click the Extend option.

Of course, doing this won’t be any good if your hard drive or SSD is corrupt or damaged in some way. Thus, first of all, format the internal storage before you extend the installation partition.

Check Your BIOS

Your BIOS may be too old and in need of an update. It may not be able to keep up with the new tech in Windows 10, which is why the system returns errors like the error code 0x8007025D problem during installation.

Several users claimed updating their BIOS solved the issue completely. The theory goes that bringing your BIOS to the latest version equips it with everything it needs to work smoothly with Windows 10. If your BIOS is old and an update is available for it, there is no reason for you not to quickly install it.

Remember that updating your BIOS is needed only in extreme cases. If your BIOS is current enough, or if you haven’t exhausted all the possible solutions, you don’t have to do it.

First, check whether a BIOS update is available for your PC:

  1. Open the Start menu and type “msinfo”.
  2. Click System Information in the results to launch it.
  3. Look for BIOS Version/Date and note the number after your system name and model. This is your BIOS version. Note it down.
  4. Go to the support page of your PC manufacturer and look for the latest BIOS version for your model. Compare the latest BIOS version with your current BIOS version.
  5. If an update is available, download it to your desktop and unzip it.
  6. Run the BIOS setup and follow the instructions to install it.

This is the most common method to install BIOS on most modern PCs. However, if there is a Readme file in the BIOS download package, consult it and follow the instructions therein.

After you have done the update, retry the Windows 10 installation. Hopefully, nothing will go wrong this time. If the 0x8007025D error still shows up, try the next solution.

Download a Fresh Windows 10 Image File

There is a chance that the ISO image you’re trying to install contains a corrupt file. That corrupt file may be affecting everything else and giving rise to the current error. Faulty files often cause decoding errors. The system is unable to read a faulty file, especially if it is an important system component.

Another possibility is that a certain file is missing. Files can sometimes disappear from a Windows installation image. Without these files, of course, the installation may not even be able to start, never mind be completed.

To solve the current error, you may need to download the Windows 10 ISO file again before you retry the installation. If the error indeed results from a corrupt or missing file, chances are that downloading a fresh image will solve the issue immediately.

Go to the Windows 10 download page and redo the download. If you’re installing Windows 11, go to the Windows 11 download page instead. Make sure to follow the instructions to create a bootable USB drive. Now, go ahead and try installing Windows again.

Note that you don’t need a flash drive if you want to upgrade to a new build of Windows 10 from your current version. Windows 10 can mount image files automatically without the need for intermediary software like Rufus. If installing Windows via a bootable drive or disk has caused you no end of problems, you can try this method instead.

Just double-click the ISO file to mount it in Windows 10 and then run the installer. The rest of the installation will proceed as normal.

Create a Bootable Windows 10 Image on Another Flash Drive

There is a possibility that nothing is wrong with the image you downloaded. Rather, the fault lies with the flash drive you are using. If you have repurposed an old USB drive as installation media, the drive might have sectors that cannot be read by the PC. When the system tries to read the part of the Windows image stored in the bad sector, it hits a brick wall and you get the 0x8007025D error.

Though it is difficult to figure out for sure whether the USB stick is faulty, it could be one of the few things left to consider if other avenues don’t work. Moreover, the technology on an old flash drive might not be suitable to install Windows 10 with.

That’s also the case with Windows 11, as the new OS comes with strict specifications that cancel out lots of Windows 10-capable devices.

So, find another, preferably newer USB stick and plug it into your PC. Then go to the official Windows 10 download page and create bootable installation media. Run the installation from there and check whether the 0x8007025D error still interferes with the upgrade.

It might be a good idea to create bootable USB media on another computer first before plugging it into yours and running the installation.

Restart the Background Intelligent Transfer Service

If the installation of Windows 10 that triggers the error in question has been downloaded by Windows Update, restarting the Background Intelligent Transfer Service (BITS) can fix it. This service is responsible for fetching and downloading Windows updates in the background.

You may download the ISO file yourself or leave the task to Windows Update. In the latter case, it prompts you to begin the installation when the background download of installation files is complete. If during the download, you get the “Windows cannot install required files” error on a white background, you are pretty much stuck there. Fortunately, after closing that window, you can keep using your current installation.

If a downloaded file becomes corrupted, Windows will simply download the file again next time. Or you may go directly to Windows Update and trigger the download. It is worth restarting the BITS service so the same error won’t happen again. Here is what you should do:

  1. Open the Run box, type “services.msc” and click OK.
  2. In the Windows Services window, scroll down the right pane and select Background Intelligent Transfer Service.
  3. Right-click the service and select Properties.
  4. In the BITS Properties dialog, change the startup type to Automatic (Delayed Start) and click Apply.
  5. Now click the Stop button under Service Status.
  6. Click OK and reboot the computer.

The BITS service will restart automatically after a reboot. Run Windows Update again and install the feature build.

Troubleshoot Your RAM

We are sure you know that RAM stands for Random Access Memory. What you may not know is that the Windows 10 setup seems to be particularly picky about the kind of RAM it wants on a system. If it detects any issues with the system memory, it may stop the installation completely rather than have the OS deal with recurring memory problems after installation.

Many users claimed that removing their RAM sticks fixed the 0x8007025D error for them. You can do the same if you have at least two memory sticks installed on your PC. Remove one of them and run the installation. If the error still occurs, redo the installation with the second stick installed and the first one out.

If you keep getting the error after this, you can run a scan of your memory with the built-in BIOS memory diagnostics tool:

  1. Power on your PC and immediately start pressing the dedicated BIOS hotkey for your system.
  2. Once in BIOS, select Diagnostics and launch the tool.
  3. Select the Memory Test option and run the scan.

Pay careful attention to whatever error the memory test displays. You may need to replace your memory stick and also reset your BIOS settings to their defaults before you redo the installation.

Afterword

Now that you have successfully installed Windows 10 after using the fixes in this guide, what’s next? Of course, you need to set up many things on your system, such as the background and themes, email services, and work and social accounts.

One thing you cannot ignore is installing drivers for the updated operating system. Since a clean installation wipes out everything, you will need to install the drivers for your critical hardware once again. If you have installed the latest Windows 10 build, you will be partly covered since several drivers from the major OEMs are already included in the OS.

Still, Windows cannot include everything, so you will have to figure out how to get the latest drivers for the rest of your hardware yourself. Chances are, you will discover that multiple device drivers are in need of an update.

Updating them individually through the Device Manager is one option. However, if you are after speed and convenience, you are better off using a third-party tool like Auslogics Driver Updater.

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With the full version of Driver Updater, in just one click, you can update all your missing drivers and those rendered obsolete or incompatible by Windows 10 after the clean installation. Here’s what you should do:

  1. Visit the tool’s official page and download Driver Updater.
  2. Click the downloaded file and launch the Driver Updater setup wizard.
  3. Before you click the Click to Install button, choose your preferences. You can choose which language the software should be installed with, the location of the installation, and whether a shortcut should be created on your desktop. When you are satisfied with your choices, only then click the Click to Install button.
  4. When the installation finishes, the program will launch automatically and begin to scan your system for bad, missing and damaged drivers. The software may not launch automatically. In that case, launch it yourself and click on the Start Scan button to commence scanning your PC for problematic drivers.
  5. When the scan is done, a list of your PC’s drivers along with their update status will be shown. You will be able to note which devices have drivers that need an update.
  6. Click the Update button next to a hardware driver to allow the tool to download and install the latest software for it. With the full version, you can click the Update All button to install updates for all the drivers in one go.