How to Fix Modern Setup Host Has Stopped Working in Windows 10 PC

Windows 10 offers a lot of benefits. The most popular among them is upgrading from Windows 7, Windows 8 without losing data, application, or settings. But certain users have reported encountering Modern Setup Host has stopped working error message when upgrading to Windows, using Windows 10 Media Creation Tool.

What is a Modern Setup Host?

Modern Setup Host is a self-extracting archive and installer. You can find it under the C:\$Windows.BTSources folder as a Modern Setup Host.exe. When the system detects or installs updates, this file runs in the background. Moreover, when upgrading to Windows 10, we need this file as it runs the setup file.

This means if it stops working while installing Windows 10, you will face a lot of problems.

Therefore, to help resolve the issue here, we bring certain fixes.

Before we move ahead and learn how to fix Modern Setup Host has stopped working a few things you should keep in mind.

  1. Temporarily disable 3rd party antivirus or firewall
  2. Disconnect unnecessary external devices
  3. Make sure your disk has enough free space, i.e. at least 20 GB.

However, if you don’t have enough space and would like to free up space to see if it helps, here you go.

How to free up storage space on Windows


Low storage space on any operating system is the most dreaded error message. We all fear encountering it. But when we are here, there’s nothing to worry about.

Here we explain a simple way to free up storage space occupied by unwanted files. This means you don’t have to move any of your important data.

To make space for important files and to fix Modern Setup Host has stopped working we will use the best PC optimizer – Advanced System Optimizer.

This one-click PC cleaner and optimizer works wonderfully on your Windows operating system. Using it in no time, you can get rid of junk files and other unwanted data that clutter your system.

To use it you need to download and install it. To download

Once installed, click Start Smart PC Care, and let the scan run.
In addition to this, using the excellent optimization tool, you can fix invalid registry errors, outdated drivers, clean virus malware, and boost system speed. This is the least time consuming of all methods. Give it a try.

How to fix Modern Setup Host Has Stopped Working Error?

Below- mentioned solutions will help fix Modern Setup Host has stopped working Windows 10 error message. Use the solution one by one to see which one works for you.

Method 1: Check free Hard Drive space

Since the Media Creation Toolkit alone required 8 GB for downloading the update, you need to have a minimum of 15+ GB free storage. If you have less free space on your system, you might end up facing Modern Setup Host has stopped working. Here are some tips using which you can free up space:

  • Delete unnecessary hard disk partitions
  • Backup data to external storage, cloud storage like Google Drive, OneDrive, etc.

However, if you think this is time-consuming, you can use Advanced System Optimizer. The best solution to free up disk space and help fix Modern Setup Host Stopped Working Error.

This advanced tool repair & scans your system for DLL errors, junk files, temporary files, and other unwanted data. Using it, you can fix common Windows errors and solve BSOD problems caused due to outdated drivers, damaged system files, etc.

Method 2: Disable Unwanted Startup Items

Sometimes disabling third party services and removing unwanted startup items helps fix Modern Setup Host stopped working error messages. To disable services that are not related to Microsoft and see if it helps, follow the steps explained below:

1. Press Windows + R keys together

2. Next in Run windows types MSConfig and press Enter.

3. You will now see the System Configuration window. Here click Services tab and check the box next to Hide all Microsoft services.

System Configuration window

4. Once done, click Disable all to stop running third party services > Apply > OK.

stop running third party services

After this, click the Startup tab > Open Task Manager. Select each service individually and click Disable.

Open Task Manager, host has stopped working installing windows 10

Select each service individually and click Disable.

service individually in task manager

Note: The above steps will work on Windows 8 also.

However, if you are using Windows 7, under the System Configuration window click Startup tab > Disable All. This will disable all third-party services.

To save changes, we recommend restarting Windows operating system.

Method 3: Create and use a bootable USB to upgrade to Windows 10

Since you are facing Modern Setup Host has stopped working installing on Windows 10 when using Media Creation Toolkit, we suggest using a bootable USB flash drive. Click here to learn how to create a bootable USB to install Windows. This will help upgrade Windows machine to Windows 10.

Method 4: Run Disk Cleanup and delete $Windows.~WS folder

In this method, we will learn how to run Disk Cleanup and delete $Windows.~WS from the disk partition.

What is Disk Cleanup utility?

Disk Cleanup is a Windows integrated utility that helps remove unnecessary files from the hard drive. It is found in almost all Windows versions, and it helps increase system performance.

To learn how to use Disk Cleanup Utility click here.

Next, we will delete the $Windows.~WS folder. Generally, when you upgrade to Windows 10 from previous version two hidden folders on your C Drive (where Windows is installed are created) One of those hidden folders are $Windows.~WS

Note: Deleting $Windows.~WS means you won’t be able to revert to the previous version of Windows.

Method 5: Run setupprep.exe to resume upgrade

If the above solution did not help try running setupprep.exe file. This file, instead of starting over, help resume the last operation and is compatible with Windows 7, Windows 8, and Windows 8.1.

To run setupprep.exe file, follow the steps below:

  1. Use Media Creation Toolkit to run windows upgrade.
  2. Once you get Modern Setup Host stopped working error message, exit Media Creation Tool or Windows update.
  3. Next press Windows + R keys together.
  4. This will open Run window here paste: C:\$Windows.~WS\Sources\Windows\sources\setupprep.exeand press  
  5. This will resume the Windows upgrade. Now, wait for the process to finish.

You should not face any problem.

Method 6: Use DISM to repair Windows

To perform this method, we need to run DISM (Deployment Image Servicing and Management). To do so, follow the steps below:

1. In Windows search bar type Command Prompt

2. Now from the right pane click Run as administrator.

Use DISM to repair Windows

3. This will open the Command Prompt window in admin mode. Type following commands one by one and press enter after each command:

DISM /Online /Cleanup-Image /CheckHealth

DISM /Online /Cleanup-Image /ScanHealth

DISM /Online /Cleanup-Image /RestoreHealth

Command Prompt window in admin mode

4. Wait for the process to finish. Once done restart Windows and check whether the modern setup host windows 10 error is fixed or not.

Method 7: Run System File Checker

System File Checker (SFC) command is used to fix system file corruption. To use it, we need to add a command like SCANNOW.

This command scans all protected system files and repairs files with problems. To run the command and fix Modern Setup Host has stopped working, follow the steps below:

1. Type cmd in the Windows search bar.

2. Click Run as administrator from the right pane

Modern Setup Host has stopped working

3. Next, in Command Prompt, window type SFC/scannow and press the Enter key.

Command Prompt, modern setup host has stopped working windows 10

4. Wait for the scan to finish.

5. Once done, you will see the corrupted files that might be causing Modern Setup Host stopped working when installing Windows has been fixed.

Restart the Windows operating system and check if the Modern Setup Host error message is fixed or not.

Method 8: Install or upgrade graphics card driver

Corrupt graphic card drivers can also cause Modern Setup Host to stop working. To fix it you can manually update drivers from Device Manager. Or can use the Driver Updater module of Advanced System Optimizer.

This driver updater feature automatically scans your system for outdated and corrupt drivers and updates them in a single click. You can find Driver Updater under the Windows Optimizer module.


Additional Information:

Moving the user profile from Windows installation drive (C:\) also causes Modern Setup Host error. Therefore, if you have ever moved it, put it back to the default location C:\Users\YourUserProfile.

Once done, try upgrading to Windows 10. You should be able to do it without getting any error message.

Method 9: Do a Clean Boot

If the Modern Setup Host error message is not yet fixed, try performing a clean boot of Windows 10. This will help fix the error message. To do so, follow the steps below:

1. Type MSConfig in Windows search bar > select System Configuration and press Enter.

System Configuration, modern setup host has stopped working

2. If you receive UAC box press enter. This will open the System Configuration window.

3. Click General tab > Selective startup

Selective startup

4. Uncheck both Load system services & Load startup items > Apply.

Load startup items, Load system items

5. Next, make sure Use original boot configuration feature is checked.

6. Afterwards, click the Services tab. Check the box next to Hide All Microsoft Services > click Disable all button.

Hide All Microsoft Services

7. Restart Windows.

8. Now check your system Modern Setup Host has stopped working windows 10 update error should now be fixed.

Note: If the problem is fixed after using the above method undo above modification and restore to default.

This all for now. We hope using these steps you were able to fix Modern Host Setup has stopped working Windows 10 error message. Also, note only after trying these steps, we have listed them. This means you will be able to fix Modern Setup Host error and can upgrade to Windows 10 without any problem.

We hope you like the article and found it helpful in solving the issue. Please share your views about it. We’d love to hear from you. Also share it with your friends and connect on our social network.

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