Microsoft add support for Windows Server 2016 as a guest system for VMM 2012 R2. Microsoft Support still gets frequent inquiries about whether System Center 2012 R2 VMM can support guests running Windows Server 2016. Installing  Hotfix 1 for Update Rollup 11 of Microsoft System Center 2012 R2 Virtual Machine Manager (VMM) enables you to create Windows Server 2016-based guest virtual machines (VM) in VMM.

Help article 3199246 contains the link to Hotfix 1 for Update Rollup 11 of Microsoft System Center 2012 R2 Virtual Machine Manager (VMM). This hotfix contains two update packages for Update Rollup 11: One for the VMM Server and the other for the Administrator Console.
After you apply this hotfix, you can create Windows Server 2016-based guest virtual machines (VM) in VMM. This hotfix also enables you to select roles and features that are applicable to Windows Server 2016 when you create a VM Template.
Note: To apply this hotfix, you must be using Update Rollup 11 for System Center 2012 R2 Virtual Machine Manager.
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