Welcome to TSG!
If you have
setup.bat and it's creating a
Stepup folder, what you have is the
MS-DOS 6.22 Step-up files. This requires you to already have MS-DOS 6.X installed. It only upgrades a previous version, it won't install MS-DOS 6.22.
An MS-DOS 6.X install will use
setup.exe, not
setup.bat.