In order to launch the virtual machine creation wizard, right-click on a container that a virtual machine can reside in (Cluster, ESXi host, and resource pool, among others). Select New Virtual Machine....

Once the Create New Virtual Machine wizard is launched, there are two options, Typical and Custom, as shown in the next screenshot. A typical configuration uses common virtual hardware and configurations based on the selection of the guest operating system. A custom configuration, which will be explored in the next section Creating a VM using the custom configuration wizard, allows you to modify the specifications of the virtual hardware.

After selecting Typical, click on the Next button.