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.
EDIT: I've moved the crystal (and 22 pF cap's) closer to pins 16 and 17. The steps I take are:
- Upload "ArduinoISP" sketch to Arduino Micro (the "programmer").
- Select "Arduino Micro" as the board to be programmed.
- Select "Arduino as ISP (Atmega32U4)" as the programmer.
- 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.
