Fix: Windows 10 to 11 Upgrade Error 3247440388 (Edition Mismatch)

A customer contacted us after their Windows 10 to Windows 11 upgrade kept failing with error code 3247440388. The upgrade had been attempted multiple times through their remote management tools and directly on the machine, but it consistently failed with an “incorrect version” error. We resolved it by downloading the correct Windows 11 ISO from the Microsoft 365 admin portal and running the upgrade manually. Here is what caused it.

Symptoms

When attempting to upgrade from Windows 10 to Windows 11, the installation fails with one of the following errors:

Windows 10 upgrade error – Error code: 3247440388 (0xC1900204)

The hexadecimal equivalent of error code 3247440388 is 0xC1900204, which means MOSETUP_E_COMPAT_EDITION_MISMATCH. This indicates that the Windows 11 edition in the installation media does not match the currently installed Windows 10 edition.

The device specifications before the upgrade attempt show Windows 10 Business edition:

Windows specifications showing Windows 10 Business 22H2 (Build 19045) before the upgrade attempt.

During the upgrade, the Windows 11 Setup may show “Choose what to keep” with only the Nothing option available, and the message “Your files, apps, and settings can’t be kept because you’re installing an edition of Windows that’s different from the one you’re currently using”:

Windows 11 Setup showing only “Nothing” as an option due to an edition mismatch.

You may also see a “What needs your attention” warning about optional features being removed:

Windows 11 Setup warning that some optional features will be removed during the installation.

Affected Software

• Current OS: Windows 10 Business, Pro, or Enterprise (any build)
• Target OS: Windows 11 (any version, commonly 24H2)
• Error Code: 3247440388 / 0xC1900204 (MOSETUP_E_COMPAT_EDITION_MISMATCH)

Cause

Error code 0xC1900204 occurs when there is an edition mismatch between the currently installed version of Windows and the upgrade media. Common causes include:

• Wrong ISO edition: Using a Windows 11 Home or Pro ISO to upgrade a Windows 10 Business edition machine. Windows 10 Business requires the Windows 11 Business edition ISO.
• RMM tool using generic media: Remote monitoring and management tools may use a generic Windows 11 image that does not include the correct edition for your licence.
• Volume licence mismatch: The upgrade media was built for a different licence channel (retail vs volume) than the one activated on the device.

Resolution

Step 1: Download the correct Windows 11 ISO

The most reliable way to get the correct edition is to download it from the Microsoft source that matches your licence:

• Microsoft 365 admin portal: Sign in to admin.microsoft.com, navigate to Billing > Your products, find your Windows licence, and download the ISO from there. This ensures you get the correct edition for your subscription.
• Microsoft 365 Apps portal: Go to portal.office.com > View apps & devices and look for the Windows upgrade option.
• Volume Licensing Service Center (VLSC): For organisations with volume licence agreements, download from VLSC.
• Windows 11 media creation tool: Download from microsoft.com/software-download/windows11. Select the correct edition (Pro, Business, Enterprise) that matches your current Windows 10 licence.

Step 2: Run the upgrade manually

1. Copy the downloaded ISO to the local workstation
2. Double-click the ISO to mount it (or right-click > Mount)
3. Run setup.exe from the mounted drive
4. When prompted to “Choose what to keep”, select Keep personal files and apps (this option should now be available with the correct edition)
5. Follow the prompts to complete the upgrade
6. After the upgrade completes, check Settings > System > About to confirm you are running Windows 11

Step 3: Resolve activation issues after upgrade

After a successful upgrade, Windows may show as “not activated” even though a digital licence exists for the device. In most cases, a simple restart resolves this. If activation does not complete after a restart:

1. Open Settings > System > Activation
2. Click Troubleshoot to run the activation troubleshooter
3. If the device was previously activated with a digital licence, it should re-activate automatically
4. For devices managed via Microsoft 365 Business Premium or Intune, the licence may take up to 24 hours to sync

Important Notes

• Windows 10 end of support: Microsoft has ended mainstream support for Windows 10 as of October 2025. Devices remaining on Windows 10 will no longer receive security updates unless enrolled in the paid Extended Security Updates (ESU) programme.
• Hardware compatibility: Before upgrading, check that the device meets Windows 11 hardware requirements: TPM 2.0, Secure Boot, 4 GB RAM minimum, 64 GB storage minimum, and a compatible 64-bit processor.
• Backup first: Always ensure a current backup exists before attempting an in-place upgrade. If the upgrade fails partway through, data loss is possible.
• The error code 3247440388 is the unsigned decimal representation of 0xC1900204. Both refer to the same edition mismatch error. Some tools display one format, some the other.
• If your RMM or deployment tool consistently fails, use the manual ISO method described above. Once the device is on Windows 11, future feature updates can be managed normally through Windows Update or your management tools.

Related Resources

• Microsoft Learn: Windows upgrade error codes and resolution procedures
• Microsoft: Download Windows 11
• Microsoft: Windows 11 system requirements
• Microsoft Learn: Windows 11 requirements