SetupHost.exe stack-overflow (0xc00000fd) crash during Windows 10 in-place upgrade while SbieDrv minifilter is loaded

Summary

Running Windows 10 Setup (SetupHost.exe) for an in-place upgrade crashes with a stack overflow (STATUS_STACK_OVERFLOW, 0xc00000fd) at the "Making sure you have enough space" / compatibility-check stage, while the Sandboxie-Plus SbieDrv filesystem minifilter driver is loaded. Unloading/disabling SbieDrv beforehand avoids the crash.

Environment

• Host OS: Windows 10 Enterprise 2016 LTSB (1607), build 14393.2273, amd64
• Target: Windows 10 Enterprise LTSC 2021 (19044) in-place upgrade (setup.exe /auto upgrade)
• Sandboxie-Plus: v1.16.0
• SbieDrv driver: C:\Program Files\Sandboxie-Plus\SbieDrv.sys, State = Running (confirmed via Get-CimInstance Win32_SystemDriver)
• System volume: NTFS, C:, Legacy/MBR

Steps to reproduce

1. With Sandboxie-Plus installed and SbieDrv loaded, mount the Windows 10 LTSC 2021 ISO and launch setup.exe /auto upgrade.
2. Proceed to the "Making sure your PC has enough space" / compatibility-check phase.
3. SetupHost.exe hangs, then shows "SetupHost.exe has stopped working" (WerFault). The upgrade never advances.

Expected behavior

Setup should either complete the compatibility/space check, or fail gracefully with a clear message (e.g. "a loaded driver is incompatible, uninstall Sandboxie"). It should not crash the setup host process.

Actual behavior

SetupHost.exe (version 10.0.19041.1253) terminates with an unhandled exception. Windows Error Reporting (Event ID 1000 / 1001, APPCRASH):

• Faulting module: ntdll.dll
• Exception code: 0xc00000fd (STATUS_STACK_OVERFLOW)
• Offset: 0x0000000000039893

This is consistent with unbounded recursion while SetupHost walks the filesystem and the SbieDrv minifilter re-enters on the resulting I/O.

Workaround

Unload/disable SbieDrv before starting Windows Setup (recommended; we are re-running the upgrade to confirm):

fltmc unload SbieDrv
:: if it refuses while sandboxes are active:
sc stop SbieSvc
fltmc unload SbieDrv
:: prevent reload on next boot:
sc config SbieDrv start= disabled

Temporarily uninstalling Sandboxie-Plus also works.

Additional notes

• Third-party filesystem filters (AV/encryption/backup) are a known source of similar crashes during Windows Setup; flagging here so SbieDrv's pre/post-operation callbacks can be reviewed for re-entrancy / stack-depth issues during heavy directory enumeration.
• Happy to provide SetupHost crash dumps or setupact.log / setuperr.log if useful.