Welcome to Microsoft Q&A!
Thank you for taking the time to provide these additional details. I understand how frustrating it can be when the available installation media prevents you from completing an in-place repair.
The behavior you described can occur when the installation media is significantly older than the installed operating system. For an in-place repair, the media should match the installed Windows Server edition and language and should be at the same build level or newer than the installed system.
In your scenario:
- Installed operating system: Windows Server 2022, build 20348.5499
- Installation media: Windows Server 2022 RTM, build 20348.1
Because the RTM media is older than the currently installed and serviced build, Windows Setup may fail during a compatibility or upgrade phase, including the SAFE_OS phase.
Currently, Microsoft does not typically publish a refreshed Windows Server 2022 ISO for every cumulative update. Therefore, the latest ISO available through an official licensing channel may still have an earlier build than the server’s current cumulative update level.
I recommend the following:
- Check the Microsoft 365 admin center, Volume Licensing Service Center, Visual Studio Subscriptions, or your OEM licensing portal for the newest Windows Server 2022 ISO available to your organization.
- Run SetupDiag and review the logs in the Panther folders to confirm the exact cause of the SAFE_OS failure.
- If the required media is unavailable and the repair must be completed, open a Microsoft Support case for further assistance and to discuss the supported recovery options for this server.
Reference: Upgrade Windows Server in Place | Microsoft Learn
If you find this information helpful, please click Accept Answer.
Thank you for using Microsoft Q&A.