Choose "Custom: Install Windows only (advanced)". When you see the partition screen:
Focused strictly on performance and minimal disk footprint, making it ideal for older 16GB Intel Atom tablets. How to Optimize a 16GB Installation windows 11 lite 16 gb
With page file moved to a USB/SD card, you can gain ~2 GB more free space. Choose "Custom: Install Windows only (advanced)"
Most Lite ISOs come with a pre-applied appraiserres.dll hack to bypass Microsoft’s hardware checks. If not, during setup press Shift+F10 , type regedit , navigate to HKEY_LOCAL_MACHINE\SYSTEM\Setup , create a key LabConfig , and add BypassTPMCheck =dword:00000001. during setup press Shift+F10
Recommendation: Use (official, supports 16 GB storage) instead of unofficial “Lite” modifications.