I ran into this problem building my own PC. (Rizen 9 9950, msi project zero, Nvidia 4070 ti super, and the usual collection of NVMe drives, RAM and fans -- oh so many fans!.) The peculiar thing I was trying to do was install off of a Windows 11 ISO, which I block copied to a thumb drive using macOS dd from the command line. (This method is described several places online, but was a point of failure I was concerned about.) Though the Mac could read the volume and the usual Windows™ files were there, and the PC would boot off it, I couldn't actually proceed to installing the software due to the above described "Install Driver to show hardware" problem. Using a different thumb drive didn't work. Installing the windows 10 ISO the same way didn't work. Always "Install Driver to show hardware". There is a lot of black magic and shaking of voodoo rattles at this particular problem available online, but I think at the end of the day, Microsoft would like you to use their app to make the thumb drive, and if all you have is a Apple Silicon Mac like I do, then you are just plain out of luck, and can not consume their $149 product! I also tried using dd to copy over my windows 11 pro install disk to the thumb drive and that didn't work either. I expect Microsoft is doing a little extra magic to the thumb drive beyond just copying over the ISO in their app to "bless" it (as Apple would say). I say this as a former Apple engineer, but really I have no idea what Redmond does behind the scenes.
So, I was left with either going down to the library to see if they would let me use a windows machine to prepare the thumb drive per the "Official way" in Microsoft's website, or purchase a external DVD-ROM drive. While the library approach might have worked had I been able to convince them to let me install MS software, at the end of the day, I was wondering if I will again have this problem when some other bit of software arrives by DVD, so I went down to the computer store an purchased a archaic DVD ROM drive for $40. This worked just fine with the DVD! The gaslighting is now over and I am now much more happily debating weighty matters post Windows install such as which keyboard layout I should choose. I do hope Microsoft comes up with a new way to distribute Windows that doesn't rely on already having Windows or the archaic DVD-ROM drive. Most of the PCs I saw in the computer store don't have a DVD drive, and the case I bought from Corsair doesn't have a place for one, so I feel like Microsoft is falling behind the times a bit on this one. I would have been very happy to purchase a MS branded USB stick for this purpose. The chicken-feather rattle shakers online would have you believe that inexpensive thumb drives don't work, so it would be nice to have one that was certified as reliable. It also would have saved me $40.
It's a business opportunity, Microsoft! Go do what you do.