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I got the same issue, changing the Neighborhood number from 1 to 2 helped me. Since you cannot press any button in-game while seeing this screen, you should change it via registry:
Here's the ready reg file for it: save the following text in notepad (starting from the word Windows) and save it as "1.reg" to Desktop. Then open it and add its content to registry. Done! Now your neighborhood number is 2. It will generate all lots and sims again. This time the progress bar should at least move, but don't close or minimize the game window or switch to another app during the process.Windows Registry Editor Version 5.00 [HKEY_CURRENT_USER\SOFTWARE\Electronic Arts\The Sims 25] "SIMS_CURRENT_NEIGHBORHOOD_NUM"="2"
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