Restore to a dynamic disk makes the machine unbootable

Challenge

After a successful restore from Veeam Recovery Media, the OS does not boot. The machine shows this message:
 

Operating system not found

Cause

If the OS has been restored to a dynamic disk, the dynamic group appears as "foreign" in the OS, thus making it unbootable. This is the design behavior of Windows OS.

Solution

Before attempting a restore from Veeam Recovery Media, check if you have any dynamic disks. In the Recovery Media menu, choose Tools > Command Prompt.

In the command prompt, type
 

diskpart

When the command prompt switches to diskpart, type 
 

list disk

The dynamic disks will be marked in the Dyn column. If you have any basic disks, make sure you restore the system volume to one of them. In case all listed disks are dynamic, use this Microsoft KB to create a basic disk.