This behavior is expected on some Arm devices when using a generic Windows 11 Arm64 installer.
For Surface devices, the recommended path is to use the Surface Recovery Image instead of building a generic USB installer. The recovery image includes the correct drivers already tested for the specific device.
For Windows on Arm media in general:
- Create the USB from the Arm64 ISO with Rufus.
- Do not use Media Creation Tool for Arm64 bootable media, because it does not currently support creating Arm64 bootable media.
- On Arm devices, boot success can depend on having the correct manufacturer drivers in the installation media.
For Snapdragon X Series devices:
- The device can boot from an ISO and install Windows without extra manufacturer drivers.
- Full functionality is not available until the remaining drivers are installed from Windows Update, typically by connecting Ethernet through a dongle or dock and then rebooting.
For earlier Snapdragon generations:
- Drivers from the device manufacturer must be injected into the image.
- Without those drivers, the device might fail to boot or boot into a state where input is non-functional.
For the Surface Laptop for Business 13.8" (Snapdragon), the supported and reliable approach is the one already validated: use the official Surface Recovery Image. Since that media boots correctly and the generic Arm64 USB loops before Windows Setup, the practical conclusion is that the generic media is not providing what the device firmware or setup path needs, while the Surface recovery media does.
If continuing to test custom media:
- Use Rufus with the official Windows 11 Arm64 ISO.
- Ensure USB boot is enabled in UEFI/BIOS.
- If needed, temporarily disable Secure Boot to test USB boot. This changes device security posture, so re-enable it after testing.
- If the image is larger than FAT32 limits, splitting
install.wim into .swm files is a valid method, but that only addresses file-size limits and does not add missing device-specific drivers.
The key point is that splitting the image or changing FAT32/NTFS layout solves media-format constraints, not Surface-specific driver requirements. On Surface hardware, the recovery image remains the recommended installation media.