As per Microsoft: "This problem may occur when the policy name is not updated in the following registry subkey on the client computers. The policy name is not updated because the GPO name is derived from the ExtensionName attribute in the class store container. The ExtensionName attribute is set only one time, when the application is first deployed in the GPO. If the GPO name is changed after the deployment, the attribute will not be updated in the following registry subkey:
HKEY_LOCAL_MACHINE\Software\Microsoft\Windows\CurrentVersion\Group Policy\AppMgmt\GUID\GPO Name". See ME834645
to fix this problem.
As per Microsoft: "The machine account for the workstation does not have permissions to the share or file system that holds the source files for the package. When a workstation runs Group Policy, it does so in the context of the machine system account for the workstation.". See the link below.
Also, as a troubleshooting approach, you should generate a verbose MSI log and see if that gives you any clues (this is a policy setting). Look for MSI* log files in %windir%\temp and %temp%.
If you don't see any, make sure the following registry key is set:
Then reproduce the problem and check for new logs. Turning on verbose MSI logging causes log files to be created in the temp folder (which temp folder depends on the context the installer is running under.) It does not cause additional messages to be written to the event log.