While installing BizTalk360 MSI, if you still face the error where the prerequisites fail in the "Windows Authentication component for IIS" step, follow the steps as shown below to solve this problem.

biztalk360 prerequisite checks

Make sure you have Windows Authentication enabled in the Windows Features.

windows authentication

If you cannot find the Windows Authentication option, please make sure the Operating System that you are currently running is either Enterprise or Professional Version. If it is Windows Single language, then it doesn't have enough privileges to have that feature.

windows server edition details

windows features window