Source : gallery.technet.microsoft.com
If you need to create an vhd file from an ISO please read the article link above.
Convert-WindowsImage is the new version of WIM2VHD designed specifically for Windows 10. It also works fine with Windows 8 and Windows 8.1. Completely rewritten in PowerShell, the Convert-WindowsImage command-line tool allows you to create generalized (“sysprepped”) VHD and VHDX images from any official build (ISO or WIM image) of Windows 7, Windows Server 2008 R2, Windows 8, Windows Server 2012, Windows 8.1 and Windows Server 2012 R2.
New in version 10 is support for Windows 10 (and Windows Server 2016) VMs and images. Full change log is below.
Images created by Convert-WindowsImage will boot directly to the Out Of Box Experience (OOBE), ready for your first-use customizations. So you can think of it as of replacement for your daddy’s “Deploy-Sysprep-and-Capture” approach. You can also use these images for automation by supplying your own unattend.xml file, making the possibilities limitless. Fresh squeezed, organically grown, free-range VHDs—just like Mom used to make—that work with Virtual PC (Windows 7 only), Virtual Server (Windows 7 only), Microsoft Hyper-V, or Windows’ Native VHD-Boot functionality!
Convert-WindowsImage (just like its precessor, WIM2VHD tool) was originally created by Mike Kolitz (http://social.technet.microsoft.com/profile/mike kolitz) while he was a Microsoft Employee and worked on Windows. The tool is now maintained and evolved by his friends from Microsoft Consulting Services (MCS).