best response confirmed by Dave Patrick (MVP)

It's possible the media is corrupt in which case I'd try downloading from another location to avoid the same copy ISP has cached on their systems. I've also seen this with HP intelligent provisioning in which case I'd ask HP about a newer version of tool compatible with server 2016. Also some hypervisors such as VMWare add an additional floppy drive that causes install media to look for licensing on floppy, in this case remove the virtual floppy from guest and try again. Also try;

Bypassing Easy Install

  1. First start VMware Workstation
  2. Create A New Virtual Machine
  3. Select the option “I will install the operating system later”
  4. Then your new virtual machine will be added to your virtual library.
  5. Double click on your new Virtual Machine to start it.
  6. Then it will prompt that an OS is not installed and provide an option to insert the OS installation media.
  7. Simply click on Change CD/DVD Settings to select your ISO media then Restart VM.