Upgrading directly from Windows Server 2016 to Windows Server 2025 is supported, but the success rate depends heavily on system health and the upgrade path used. The commands you’re already running (sfc, DISM cleanup, and restorehealth) are the right baseline checks. Beyond that, the most important preparation steps are ensuring all cumulative updates are applied on the 2016 system, removing any legacy or third‑party filter drivers (especially antivirus or backup agents), and confirming that the VM configuration in GCP matches supported virtual hardware for Server 2025. Microsoft’s guidance also stresses not attempting in‑place upgrades on Domain Controllers, and verifying application compatibility before proceeding. If you continue to see failures, it’s often due to outdated drivers or unsupported GCP guest agent versions, so make sure the GCP upgrade script is the latest release and that the VM has the current Google guest environment installed.
You can refer to this article: https://techcommunity.microsoft.com/blog/windowsservernewsandbestpractices/upgrading-to-windows-server-2025-from-windows-server-2012-r2-2016-2019-or-2022-u/4456406?utm_source=copilot.com