When you install Windows Server 2012 on a Windows Server 2008 r2, you might see that the virtual machine is unresponsive and that the screen of the virtual machine is constantly flickering. This is caused usually because the virtual machine has not enough virtual memory configured. I have seen this issue occurring if the virtual machine has less ten 2048MB of memory assigned. Increasing the virtual machine's memory to more or equal to 2048MB resolves the issue.
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