Legit source: https://my.vmware.com/web/vmware/details?productId=352&downloadGroup=ESXI550
(requires VMWare account to download)
Also : https://www.ultimatebootcd.com/download.html
I know the "fix" is to edit image in image editor like PowerISO, UltraISO etc.. and select "UDF" and save, but my question was regarding the took is "designed" to create Windows 7 disc from Windows 7 image, which is gonna be is the newer UDF flle system...
This would explain why DOS based images which are NOT UDF fail with this tool... Example below:

I already have Rufus for creating USB, but this is specially to do with Microsoft tool..
I know this because all the sources i got worked just for me... In the first link of EXSI5.5 as an example, that too failed from VMWare legit source as above link..
It wasn't until i edited the image and "added" UDF file system, did MS took pick it up.. I just wanted clarrification this is actually correct, since it is only a Windows tool,, not an all purpose tool.