How to Fix: VMware Operating System not Found
Some Windows users trying to use VMware Workstation or VMware Player report that they see the “Operating System Not Found” error when starting the virtual machine. The error is reported when users attempt to install an operating system from a physical disk or ISO file. The problem is not exclusive to a particular version of Windows because it has been confirmed on Windows 7, Windows 8.1 and Windows 10.
ISO connection to a virtual machine
To resolve the “Operating system not found” error when powering up the virtual machine you just created, you must connect the device/ISO to the virtual machine.