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Cannot upgrade Windows 2008 R2 to 2012 R2 in place

When you run the setup and choose upgrade you immediately get the message from compatibility report “Windows Server 2008 R2 cannot be upgraded to Windows Server 2012 R2 (With a GUI)”.

You need to have Service Pack 1 installed on Windows 2008 R2 to be able to perform the in-place upgrade. Download SP1 from the link below.

https://www.catalog.update.microsoft.com/Search.aspx?q=kb976932

Note: You also need to use a 2012 R2 setup edition in the same language and bit version (64bit).