Thank you! I deleted the drive partition and I was able to install Windows! :D

I was able to use USB mouse to continue with the Windows setup. But Bitlocker is still preventing me from installing Windows. Please see the following snapshot:
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Thank you so much PolarNettles. YOU ARE A GENIUS. I have been using 64 bit versions and wasted more than a week of my life struggling with it.

With 32 bit Windows installer, I was able to get past...

That's good to know. Thank you for taking time to explain this to me so nicely. I was under the impression that I need to solve #2 first, before I could solve #1.

Yes, I do have the file...

Thanks again!

I followed these steps to create the bootable USB drive: Install Windows from a USB Flash Drive | Microsoft Docs

Sorry, I am little confused by your answer. What do I do now,...

Thank you PolarNettles for your reply.

No, I have never encrypted this laptop using Bitlocker. In fact, I had never heard of Bitlocker before I faced this issue (Yes, I'm that dumb). Hence, I...

So I was playing with BIOS settings for reformatting my laptop and reinstalling Windows using bootable USB drive. I didn't succeed and I probably did something stupid. Now I'm not able to login into...