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App-V: Client may fail with error 1603 due to performance counter registration errors

This post discuss an issue, where the installation of the App-V client will fail with the following error: “Installation operation failed. Error 1708”. If you then check the Verbose MSI log you’ll also see something along the lines of the following:  MainEngineThread is returning 1603.
The exact cause of this can vary but is most likely due to a performance counter registration related issue.  This can happen when a previous version of the client was installed at one time and the unregister failed when it was uninstalled, or there could be registry / file permissions on the machine that are not allowing the creation of one of the temporary files needed to create and register the performance counters.

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