I am installing SP 2016 on a Windows Server 2012 R2 VM in Azure for demo purpose (not production). Since I have only one VM and I don't want to enable Azure AD Domain Services, I have configured AD on this machine (I am aware that MS doesn't recommend this but this is just a demo system). SQL Server is also installed on same machine. I am logged in as enterprise administrator.
Prerequisites are all installed fine. While installing SP 2016, I get this error that W3SVC can't be stopped. The services is stuck in 'Stopping' state and not able to kill the svchost process as well. I have tried the steps multiple times including removing and re-adding Web Server role but get the same issue. Trying to kill related process of w3svc gives access denied. I see only one error in event viewer:
Product: Microsoft SharePoint Foundation 2016 Core -- Error 1921. Service 'World Wide Web Publishing Service' (W3SVC) could not be stopped. Verify that you have sufficient privileges to stop system services.
W3SVC is configured to run with Local System account. Please let me know how I can fix this issue. I don't see any particular error in IIS logs as well. If SP 2016 will not work in this environment then I can go with SP 2013 as well.