I know this is a year late, but I was just looking for a solution for this same issue when the hard drive got wiped when installing linux. It doesn't have a dvd drive, and for some reason I could not use a bootable Windows USB install.
Create a new virtual machine without a virtual hard drive. Plug in your USB stick and format it to NTSF. Connect it to the virtual machine (you may need to go into disk manager first and put it 'offline'). Then add your Windows install disk as a virtual disk to the virtual machine. When you turn on the VM, it should boot to the virtual disk and allow you to install to the physical hard drive it sees. Since it's in a virtual machine, it sees the USB drive as a local hard drive and doesn't throw the error.