The screenshot is missing, but I think I know what is going on. May I guess that your system locale is Hindi (India) or some other language of India?
Then some part of Setup may get the idea that default for the server collation should be Indic_General_90_CI_AS, but this collation cannot be used as a server collation, as it only supports nvarchar and not varchar.
When running Setup, pay attention when you come to the Server Configuration page where there is a tab Collation. Go to that tab and select a different collation. I would recommend that you use Latin1_General_100_CI_AS. Do not select a collation without a number; these collations are old and have incomplete support for Indian languages.