VM created from full backup will not boot

A full backup of a PC converted to a MS Virtual PC VM using v11 (build 11.0.17217) is not booting properly. The VM boots to the Windows "loading" screen and then starts over again.

From another forum post it appeared the problem was with the NT signature of the master boot record in the VM. So I tried ALL the possible options for the NT Signature - Automatic, Create New, Recover from Backup, and Keep Existing. All 4 options resulted in the same behaviour.

I am including all volumes in the VM creation.

I have tried other things like providing more memory to the VM, excluding the dynamic volume from the VM (the backed up machine had a physical C and D drive).