Server 2016 – This edition cannot be upgraded

Problem

You downloaded the Evaluation version of Windows Server 2016. When you receive your license keys you get the error “This edition cannot be upgraded” when attempting to apply them.

Fix
Fortunately a quick DISM command will resolve this allowing you to activate your server installation

    Open a CMD window
    Enter the following – DISM /Online /Set-Edition:ServerStandard /ProductKey:your-new-product-key-here /AcceptEula
    Hit Enter and wait until its done.
    Answer Y to restart your server to effect the changes.

Bug alert: After the reboot check that its activated or click on Activate and reenter the key if required

Tested Platforms
Windows Server 2016 Eval
Windows Server 2016 Standard

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