Hi:
I have read that several folks are getting that error message with the HP-supplied USB recovery media.
Unfortunately, I wouldn't be able to help you with that issue, but if you can still read all 25 characters on the W7 product key on your notebook's case, you can make your own plain W7 installation media.
This site claims to have genuine, unadulterated W7 ISO files for download...
https://www.heidoc.net/joomla/technology-science/microsoft/67-microsoft-windows-iso-download-tool
Click on the link labeled Windows ISO Downloader.exe
You can use either the:
Win 7 Home/Pro (as applicable to the key) SP1 or the (Retail version, but the OEM key on your PC's case will work with it)
Win 7 Home/Pro (as applicable to the key) SP1 COEM (This version would be for what HP would have used--System Builder)
N is for European Union (EU) countries.
K is for South Korean markets.
Then you can use this tool to transfer the file to a 4 GB USB flash drive or a DVD.
https://www.microsoft.com/en-us/download/windows-usb-dvd-download-tool
If that works for you, I suggest you contact HP and ask for a refund of your purchase.
Then go to the notebook's support page to install the drivers and available software for it.