You can create this using the Windows Assessment and Deployment Kit (ADK) . However, it requires technical know-how. Pre-made PE ISOs on third-party sites are often unsafe.

Yes, with extreme modification (Tiny10 or custom builds) you can reach ~1.2GB, but 500MB remains a fantasy unless you accept a command-line-only interface (Windows PE).

This is a lightweight version of Windows used for troubleshooting and recovery, not as a full desktop operating system.