After investigating the issue, we found that in our situation the previously mentioned solutions had no effect. We found that the issue was caused by a Group Policy on our domain that implemented a Software Restriction Policy. The Group Policy was in place
to reduce the risk of a ransomware attack by preventing applications from launching from within the APPDATA folder.
If this is the case on your system you should see an entry in the Application Event Logs with Event ID 866 : SoftwareRestrictionPolicies with a description similar to :
Access to C:\Users\***\AppData\Local\Temp\ose00000.exe has been restricted by your Administrator by location with policy rule {******-*****-****-*****-*******} placed on path C:\Users\*****\AppData\Local\\.exe..
Disabling the Group Policy on the server and rebooting did not fix the issue, instead we opened the local Group Policy Editor gpedit.msc (you must be logged on to the PC and a local administrator). Within GPEDIT we went to Computer Configuration-Windows
Settings-Security Settings- Software Restriction Policies and Right Clicked on Software Restriction Policies and selected 'Delete Software Restriction Policies'. On one PC there was no Software Restriction Policies but we still got the same error. On this
PC we Right Clicked on Software Restriction Policies and selected 'New Software Restriction Policy' and then Right Clicked and selected 'Delete Software Restriction Policies' . We then were able to install MS Office without issue. Please be aware that if the
Group Policy is still enabled on your domain, the Software Restriction Policy may be reapplied the next time you reboot.
Some Antivirus/Antimalware solutions also prevent applications from running from the APPDATA folder, so you may wish to temporarily disable your AV solution if this is the case.
I hope this helps others in this situation.