OK, some more info.
The PC/Laptop in question is still supported it seems, at least I could initially install a German 22H2 (that came with it, being a refurbished laptop) and then upgrade via regular automatic in-system Windows Update to 24H2. I changed system language to English immediately after the initial install and the 24H2 update had no issues.
The iso I tried to use for 25H2 is the official one, full update, US-English version, placed on an USB boot-stick with Rufus and with the usual options to skip checks. This was intended as a test run for some machines which are actually outdated wrt hardware requirements.
I tried both cmd and powershell with admin rights, same results.
One can find some info on the net regarding the non-working "/product server" switch, for example here:
https://windowsreport.com/the-windows-11-setup-exe-product-server-bypass-is-no-longer-working/ ... albeit with a different error message.
But there are also reports which show the same command parsing issue that I got:
https://www.neowin.net/news/the-rec...onger-works-in-new-windows-11-preview-builds/
In this case it looks like setup.exe actually doesn't have the /product switch coded in because the error message is the same if I use something like "setup.exe /blablabla foo".
As for the language issue, it seems that the initial install language of the current OS must match the update, otherwise setup says that any installed apps cannot be kept because of language mismatch, only user data would be kept. This of course is not what I wanted and therefore I declined.
Could it be that Rufus replaces the setup.exe with a patched one which misses the /product option? That would explain things. I might try with an genuine install unpacked from the iso to some temp folder.
I'll also try all the above again with a German iso, I may need both anyway as some of my current installs on the outdated machines are initially German, some initially English versions.