backup my OS into a bootable iso img

About the "compact" it's just that they used solid install.wim instead of just using install.esd, for whatever reason, same compression same (in)compatibility but with the .wim extension.

 

I"m not sure but I think NTLite has this feature where you can compress the Windows directory in LZX algorithm. Someone made a 32 Bit Windows 10 where Windows folder was just using 900 MB on disk. but as @Enthousiast said, it will downgrade the performance.

 

wimlib-imagex has this feature, ntlite or dism++ just uses it.

 

Yes, now that you mentioned it, I remember Dism++ has this compactOS feature too.

 

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this method can be used to backup whole OS
but the installation will make new boot partition

if u want to backup all include the boot parition and all ntfs signature
u need app like Acronis

 

+ Capturing the install by dism won't capture the excluded file types.