I had the same exact issue on iPhone 16 upgrading to iOS 18.3 using iTunes 12.13.4.4 on Windows. After software extraction the phone restarts and iTunes crashes. Phone gets stuck on Apple logo screen/recovery mode. Retrying with update or restore doesn't help. I had to go to Apple store and they were able to restore using a Mac. I then restored from backup (which I had done prior to upgrade attempt). Here are the iTunes crash events in Windows log:
Faulting application name: iTunes.exe, version: 12.13.4.4, time stamp: 0x670a9843
Faulting module name: objc.dll, version: 1.528.1.494, time stamp: 0x66aa88f3
Exception code: 0xc0000005
Fault offset: 0x0000000000025292
Faulting process id: 0x3920
Faulting application start time: 0x1DB7677ED7A6F09
Faulting application path: C:\Program Files\WindowsApps\AppleInc.iTunes_12134.4.3008.0_x64__nzyj5cx40ttqa\iTunes.exe
Faulting module path: C:\Program Files\WindowsApps\AppleInc.iTunes_12134.4.3008.0_x64__nzyj5cx40ttqa\objc.dll
Report Id: c2400ac5-2868-436f-b871-be238116cd63
Faulting package full name: AppleInc.iTunes_12134.4.3008.0_x64__nzyj5cx40ttqa
Faulting package-relative application ID: iTunes
I have the full dumps available too if Apple support is interested.