This error was due to the UAC (User Account Control) being enabled for the administrator account that the installation was running under.
The fix:
- Log into the SharePoint Application Server
- Open up Control Panel,
- Go to User Accounts
- Click on the ‘Change User Account Control settings’ link.
- Move the slider down to 'Never notify'
- Click ‘Ok’
- Click 'Yes'
Once done set the UAC back to what it was.
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