I've seen this issue before with issues caused by really (for lack of better word) messed up partition tables. No software is perfect and some partition problems can send the Windows disk manager into an infinite loop processing the entries. In my experience, it seems that this doesn't happen to the normal Windows disk manager but does happen to the WinPE disk management subsystem for some reason.
You can try this out by seeing if the same happens when the disks are disconnected or disabled in the BIOS. If setup proceeds, it's a problem with the disk subsystem. To see if it's an issue with the partition records, you can use a tool like dban or dd on linux to clear out the first few MB on the disk (dd if=/dev/zero of=/dev/sda1 bs=5m count=1
or similar) and see if that takes care of the problem - that's fixed it for me in the past.
I haven't been able to pin down exactly what causes it, but I think it's some combination of recursive partition table entries (e.g. an extended partition record pointing at the MBR or itself) with other partition problems (as by itself it's a fairly well-documented and trivial issue to work around).
1Could be a failing hard drive. – Moab – 2015-09-18T22:14:48.400
1Without any specifics this is an unanswerable question. Can you please edit your question to add details on the make/model of your system? And if it’s a custom built system then details on key core components would be helpful. – JakeGould – 2015-09-19T03:10:43.430
is uefi and/or secure boot enabled on your motherboard ? if yes it could be the reason. – Bharat G – 2015-09-19T05:06:27.480