I have a Suite installer that contains our primary MSI package. On a customer's machine the install fails when trying to launch our primary package with the error indicated in the subject line. Actually, it fails with any .MSI package it tries to start, such as SAP Crystal Reports, etc. Our support department manually installed the prerequisites.

The OS is Windows 7 sp1 x64.

The application.msi package exists and it does create the MSI log file with the following content:
=== Verbose logging started: 5/8/2018 13:29:02 Build type: SHIP UNICODE 5.00.7601.00 Calling process: C:\Users\ADMINI~1\AppData\Local\Temp\{7584249A-B949-4CBE-A398-3E9A6C75311F}\_is3581.exe ===
MSI (c) (E8:E8) [13:29:02:277]: Resetting cached policy values
MSI (c) (E8:E8) [13:29:02:277]: Machine policy value 'Debug' is 0
MSI (c) (E8:E8) [13:29:02:277]: ******* RunEngine:
******* Product: C:\Users\Administrator\AppData\Local\Downloaded Installations\{38BE6836-758A-43EA-9D20-83C3843B476A}\amazingcharts.msi
******* Action:
******* CommandLine: **********
MSI (c) (E8:E8) [13:29:02:277]: Client-side and UI is none or basic: Running entire install on the server.
MSI (c) (E8:E8) [13:29:02:277]: Grabbed execution mutex.
MSI (c) (E8:E8) [13:29:02:277]: Cloaking enabled.
MSI (c) (E8:E8) [13:29:02:277]: Attempting to enable all disabled privileges before calling Install on Server
MSI (c) (E8:E8) [13:29:02:277]: Incrementing counter to disable shutdown. Counter after increment: 0
MSI (c) (E8:E8) [13:29:02:277]: Decrementing counter to disable shutdown. If counter >= 0, shutdown will be denied. Counter after decrement: -1
MSI (c) (E8:E8) [13:29:02:277]: MainEngineThread is returning 1601
=== Verbose logging stopped: 5/8/2018 13:29:02 ===
I was able to successfully install the MSI by creating a batch file with the correct commandline parameters, so I am confident that the MSI engine is running correctly.
It is almost as if something is blocking MSI from running from within another process.

We did have Microsoft Security Essentials disabled and the customer has Malware Bytes installed and that was disabled.

We did try msiexec /Unregister, msiexec /Register and restarting the machine.

Anytime we try to run repair on the suite installer, the repair fails as well.

Has anyone else run across this? What else can we try?