NAV 2013 Instillation Issue

Hello Experts,

I was trying to install NAV 2013 on virtual machines exist on a single system.
I have one server on which 2 virtual machines created. e.g. VM1 and VM2.
both have Windows 2013 as OS.
VM1 contains SQL Server 2012 and active directory.
on VM2 I am going to install NAV 2013 Developer environment.

During installation, I gave all the SQL Server information of VM1 to get connected and the database name.

Even though this SQL Server installed, NAV installer tries to install SQL Server express and getting failed and showing me below error.

While I am able to setup the same for NAV 2009 R2 with success.

Could you please, suggest me what can be the issue and resolution hint?

Regards,
Ravi Thakkar