EDIT: I've moved the crystal (and 22 pF cap's) closer to pins 16 and 17. The steps I take are:

1. Upload "ArduinoISP" sketch to Arduino Micro (the "programmer").
2. Select "Arduino Micro" as the board to be programmed.
3. Select "Arduino as ISP (Atmega32U4)" as the programmer.
4. Burn bootloader.

Here is the verbose output (compilation and upload):

Arduino: 1.6.12 (Windows 7), Board: "Arduino/Genuino Micro"

C:\Program Files (x86)\Arduino\hardware\tools\avr/bin/avrdude -CC:\Program Files (x86)\Arduino\hardware\tools\avr/etc/avrdude.conf -v -patmega32u4 -carduino -PCOM5 -b19200 -e -Ulock:w:0x3F:m -Uefuse:w:0xcb:m -Uhfuse:w:0xd8:m -Ulfuse:w:0xff:m 

avrdude: Version 6.3, compiled on Sep 12 2016 at 17:24:16
         Copyright (c) 2000-2005 Brian Dean, http://www.bdmicro.com/
         Copyright (c) 2007-2014 Joerg Wunsch

         System wide configuration file is "C:\Program Files (x86)\Arduino\hardware\tools\avr/etc/avrdude.conf"

         Using Port                    : COM5
         Using Programmer              : arduino
         Overriding Baud Rate          : 19200
         AVR Part                      : ATmega32U4
         Chip Erase delay              : 9000 us
         PAGEL                         : PD7
         BS2                           : PA0
         RESET disposition             : dedicated
         RETRY pulse                   : SCK
         serial program mode           : yes
         parallel program mode         : yes
         Timeout                       : 200
         StabDelay                     : 100
         CmdexeDelay                   : 25
         SyncLoops                     : 32
         ByteDelay                     : 0
         PollIndex                     : 3
         PollValue                     : 0x53
         Memory Detail                 :

                                  Block Poll               Page                       Polled
           Memory Type Mode Delay Size  Indx Paged  Size   Size #Pages MinW  MaxW   ReadBack
           ----------- ---- ----- ----- ---- ------ ------ ---- ------ ----- ----- ---------
           eeprom        65    20     4    0 no       1024    4      0  9000  9000 0x00 0x00
           flash         65     6   128    0 yes     32768  128    256  4500  4500 0x00 0x00
           lfuse          0     0     0    0 no          1    0      0  9000  9000 0x00 0x00
           hfuse          0     0     0    0 no          1    0      0  9000  9000 0x00 0x00
           efuse          0     0     0    0 no          1    0      0  9000  9000 0x00 0x00
           lock           0     0     0    0 no          1    0      0  9000  9000 0x00 0x00
           calibration    0     0     0    0 no          1    0      0     0     0 0x00 0x00
           signature      0     0     0    0 no          3    0      0     0     0 0x00 0x00

         Programmer Type : Arduino
         Description     : Arduino
         Hardware Version: 2
         Firmware Version: 1.18
         Topcard         : Unknown
         Vtarget         : 0.0 V
         Varef           : 0.0 V
         Oscillator      : Off
         SCK period      : 0.1 us

avrdude: AVR device initialized and ready to accept instructions

Reading | ################################################## | 100% 0.00s

avrdude: Device signature = 0xffffff (probably .reduced_core_tiny) (retrying)

Reading | ################################################## | 100% 0.00s

avrdude: Device signature = 0xffffff (probably .reduced_core_tiny) (retrying)

Error while burning bootloader.
Reading | ################################################## | 100% 0.00s

avrdude: Device signature = 0xffffff (probably .reduced_core_tiny)
avrdude: Yikes!  Invalid device signature.
         Double check connections and try again, or use -F to override
         this check.


avrdude done.  Thank you.

So I'm trying to build an Arduino Micro using a bread-board and through-hole components. I'm leaving out the voltage regulator and voltage selector (see schematic at the bottom for reference). I'm powering off of USB, so the +5V line is connected to VUSB.

I checked over the circuit many times, so I think it's okay. Below is a picture of me trying to use an Arduino Micro to load the bootloader on to the Atmega32U4:

I looked here and here as references for trying to load the bootloader, but every time I try it gives me an error. It seems like the MCU is not being recognized. Has anyone tried this before, and successfully done it? I'd like some pointers as to how to achieve this.

So I'm trying to build an Arduino Micro using a bread-board and through-hole components. I'm leaving out the voltage regulator and voltage selector (see schematic at the bottom for reference). I'm powering off of USB, so the +5V line is connected to VUSB.

I checked over the circuit many times, so I think it's okay. Below is a picture of me trying to use an Arduino Micro to load the bootloader on to the Atmega32U4:

I looked here and here as references for trying to load the bootloader, but every time I try it gives me an error. It seems like the MCU is not being recognized. Has anyone tried this before, and successfully done it? I'd like some pointers as to how to achieve this.