I've used SnagIt for static screen capture not video capture. I wasn't aware it did video capture, but do know it has developed a lot over the years.
Here's my very inexpensive, but quality solution (Full HD, Low Latency, Live DAW playback, Commentary, PiP webcam) ...
I use
Microsoft Expression Encoder 4 SP2. From memory I think it includes the Screen Capture Codec, otherwise download
here. Don't worry about things you might see/read about 10 minute record limits - restrictions were removed with SP2. You can also record a Picture in Picture webcam. Basic cuts/edits/media inserts. Price - FREE.
When recording a DAW, with it's audio in/outs redirected, live commentary/playback is often not picked up by screen recording software. I get around this with
Voicemeeter. This is a very versatile piece of software (Virtual Mixer) and allows low latency through continued use of ASIO. They also have other virtual cables which you might find a use for. Price - Donationware - flick'em $20 if you find it useful and continue to use it.
... and you can use
Handbrake to transcode to various formats. Price - FREE.
[Update]: Just a quick update on editing.
I actually use the software that came with a piece of kit of I've got (Roxio Game Capture HD Pro).
Your copy of Premiere is likely suitable for the task. (Hmmm, then again, modern formats/codecs(?)).
Other free offerings include:
-
Windows Movie Maker - (part of the Essentials Suite, recognise other bits you may be installing - Photo Gallery, OneDrive, Family Safety, Mail, Writer)
-
Lightworks - (720p max output for Free. Check out the linked comparison of Free vs Pro - from all accounts Free is capable)
[Update]
I wouldn't have thought a virtual machine environment would be 'necessary' for this (unless you were generally looking at that route for other purposes).
Also - I suggest Oracle Virtual Machine is more business oriented vs Oracle Virtualbox.
VMware Player would be another candidate.