@anarchy0x
What version did you download? Kali 2020.4?
Did you verify the hash of the ISO as well as the hash of the setup.exe or win32-loader.exe whatever therein to confirm its integrity after download?
It could be that the setup exe therein is corrupt.
Try copying a few files from the mounted ISO/DVD/pen drive to C:\win32-loader folder (just to test) and see if it manually copies well or not?
Disable all antivirus on your Windows. Try running setup as admin.
Alternatively try an earlier version of Kali installer ISO. The setup therein might just work well on Windows.
Also this method of installing from Windows by running setup might have its own set of challenges w.r.t. Legacy vs UEFI boot. It’s more suited for Legacy boot.
What is the boot mode (Legacy MBR or UEFI GPT) in which your existing Windows 10 is installed?
Is there any specific reason why you want to stick to this Windows installer method?
Are you going to use Kali for penetration testing? If you have a compatible USB WiFi adapter, then installing Kali in Virtual Machine on Windows 10 host is also another option for you.