You need to use the 16 bit Microsoft Segmented Linker to link 16 bit DOS code, NOT the Incremental Linker that comes with MASM32, download from MS: 16 bit Microsoft Segmented Linker 5.60
Unzip to a directory then rename link.exe to something like link16.exe and place that into your /masm32/bin directory. You now can use link16 for 16 bit DOS apps and link for 32 bit apps.
You also need to use the correct command line parameters to Assemble 16bit code, example here: assembly fatal error LNK1190: invalid fixup found, type 0x0001 As you are using a 64 bit OS, you cannot run a 16 bit DOS app natively anymore, you need to use an emulator. I use D-Fend Reloaded.