Silent installation using System Account on clean Win 7 SP1 x64 install fails

FULL PRODUCT VERSION :
JRE 8u60 b21

ADDITIONAL OS VERSION INFORMATION :
Microsoft Windows [Version 6.1.7601] Windows 7 SP1 x64

A DESCRIPTION OF THE PROBLEM :
Silent installation under System Account using offline installer fails because it tries to write to file C:\ProgramData\Oracle\Java\java.settings.cfg. This file should be created by de wrapper, but it does not.

STEPS TO FOLLOW TO REPRODUCE THE PROBLEM :
open CMD.exe as System Account using PSEXEC from sysinternals (psexec.exe -s cmd.exe)

Perform silent installation using commandline:
jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe EULA=0 AUTO_UPDATE=0 INSTALL_SILENT=1 WEB_JAVA=1 STATIC=1 NOSTARTMENU=1 REBOOT=0 /L*v %temp%\OracleJavaRuntimeEnvironment8u60.log

EXPECTED VERSUS ACTUAL BEHAVIOR :
EXPECTED -
Install JRE
ACTUAL -
Installation fails

ERROR MESSAGES/STACK TRACES THAT OCCUR :
jusched.log:

[2015/07/01 13:12:57.770, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), AllUtils.cpp:121 (logit)]
INFO: Wrapper begin...
[2015/07/01 13:12:57.770, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), wrapper.cpp:64 (WinMain)]
INFO: Running offline JRE wrapper with command line=<EULA=0 AUTO_UPDATE=0 INSTALL_SILENT=1 WEB_JAVA=1 STATIC=1 NOSTARTMENU=1 REBOOT=0 /L*v C:\Windows\TEMP\OracleJavaRuntimeEnvironment8u60ENG-W7ENG-C-1.00.000.msi.log>
[2015/07/01 13:12:57.770, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), JavaEnvironment.cpp:472 (JavaEnvironment::detect)]
TRACE: Entering JavaEnvironment::detect
[2015/07/01 13:12:57.786, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), JavaEnvironment.cpp:0 (JavaEnvironment::detect)]
TRACE: Exiting JavaEnvironment::detect (entered at JavaEnvironment.cpp:472)
[2015/07/01 13:12:57.833, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), UpdateConf.cpp:401 (SetJavaSoftKey)]
ERROR: Exception with message 'Registry.cpp(435) at Registry::deleteValue(): delete value (HKLM\SOFTWARE\JavaSoft\InstallStatus) error. System error [2](system error 2 (The system cannot find the file specified))' caught
[2015/07/01 13:12:57.833, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), wrapper.cpp:113 (WinMain)]
TRACE: No Old JRE Version found
[2015/07/01 13:12:57.880, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), AuMsi.cpp:70 (au::InstalledState::detect)]
TRACE: No Old AU Version found
[2015/07/01 13:12:57.880, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), wrapper.cpp:129 (WinMain)]
TRACE: Wrapper Load ConfigSettings...
[2015/07/01 13:12:57.880, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), InstallConfigData.cpp:160 (InstallConfigData::InstallConfigData)]
TRACE: Entering InstallConfigData::InstallConfigData
[2015/07/01 13:12:57.880, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), InstallConfigData.cpp:217 (InstallConfigData::InitConfig)]
INFO: Default config settings are:
INSTALL_SILENT=Disable
STATIC=Disable
AUTO_UPDATE=Enable
WEB_ANALYTICS=Enable
EULA=Disable
SPONSORS=Enable
OEMUPDATE=Disable

[2015/07/01 13:12:57.880, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), InstallConfigData.cpp:0 (InstallConfigData::InstallConfigData)]
TRACE: Exiting InstallConfigData::InstallConfigData (entered at InstallConfigData.cpp:160)
[2015/07/01 13:12:57.895, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), AllUtils.cpp:121 (logit)]
INFO: -->Loading Important args...
[2015/07/01 13:12:57.895, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), InstallConfigData.cpp:493 (InstallConfigData::ImportArgsConfigSettings)]
TRACE: Entering InstallConfigData::ImportArgsConfigSettings
[2015/07/01 13:12:57.895, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), AllUtils.cpp:121 (logit)]
INFO: ...Importing command line arguments
[2015/07/01 13:12:57.895, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), InstallConfigData.cpp:546 (InstallConfigData::ImportArgsConfigSettings)]
INFO: ...adding MSICMDLINE to settingsConfig
[2015/07/01 13:12:57.895, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), InstallConfigData.cpp:0 (InstallConfigData::ImportArgsConfigSettings)]
TRACE: Exiting InstallConfigData::ImportArgsConfigSettings (entered at InstallConfigData.cpp:493)
[2015/07/01 13:12:57.895, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), AllUtils.cpp:121 (logit)]
INFO: |------Important args config (TMP)--------|

INSTALL_SILENT = 1
STATIC = 1
AUTO_UPDATE = 0
SPONSORS = Enable
WEB_JAVA = 1
WEB_ANALYTICS = Enable
EULA = 0
OEMUPDATE = Disable
NOSTARTMENU = 1
REBOOT = 0
MSI_CMDLINE = REBOOT=0
|-------------------------------------|

[2015/07/01 13:12:57.895, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), AllUtils.cpp:121 (logit)]
INFO: -->Loading Config...
[2015/07/01 13:12:57.895, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), AllUtils.cpp:121 (logit)]
INFO: ...Importing runtime configuration file...
[2015/07/01 13:12:57.895, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), AllUtils.cpp:125 (logit)]
INFO: Runtime config file path is C:\ProgramData\Oracle\Java\java.settings.cfg
[2015/07/01 13:12:57.895, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), AllUtils.cpp:121 (logit)]
INFO: Runtime configuration file doesn't exist. It will be created later by settings_api.
[2015/07/01 13:12:57.895, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), InstallConfigData.cpp:493 (InstallConfigData::ImportArgsConfigSettings)]
TRACE: Entering InstallConfigData::ImportArgsConfigSettings
[2015/07/01 13:12:57.895, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), AllUtils.cpp:121 (logit)]
INFO: ...Importing command line arguments
[2015/07/01 13:12:57.895, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), InstallConfigData.cpp:546 (InstallConfigData::ImportArgsConfigSettings)]
INFO: ...adding MSICMDLINE to settingsConfig
[2015/07/01 13:12:57.895, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), InstallConfigData.cpp:0 (InstallConfigData::ImportArgsConfigSettings)]
TRACE: Exiting InstallConfigData::ImportArgsConfigSettings (entered at InstallConfigData.cpp:493)
[2015/07/01 13:12:57.895, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), InstallConfigData.cpp:603 (InstallConfigData::CheckParams)]
TRACE: Entering InstallConfigData::CheckParams
[2015/07/01 13:12:57.895, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), InstallConfigData.cpp:0 (InstallConfigData::CheckParams)]
TRACE: Exiting InstallConfigData::CheckParams (entered at InstallConfigData.cpp:603)
[2015/07/01 13:12:57.895, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), AllUtils.cpp:121 (logit)]
INFO: -->Saving backup...
[2015/07/01 13:12:57.895, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), AllUtils.cpp:121 (logit)]
INFO: ...Importing runtime configuration file...
[2015/07/01 13:12:57.895, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), AllUtils.cpp:125 (logit)]
INFO: Runtime config file path is C:\ProgramData\Oracle\Java\java.settings.cfg
[2015/07/01 13:12:57.895, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), AllUtils.cpp:121 (logit)]
INFO: Runtime configuration file doesn't exist. It will be created later by settings_api.
[2015/07/01 13:12:57.895, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), AllUtils.cpp:121 (logit)]
INFO: |------Config to backup--------|

|-------------------------------------|

[2015/07/01 13:12:57.895, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), AllUtils.cpp:121 (logit)]
INFO: -->Loading export config...
[2015/07/01 13:12:57.895, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), AllUtils.cpp:121 (logit)]
INFO: ...Importing runtime configuration file...
[2015/07/01 13:12:57.895, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), AllUtils.cpp:125 (logit)]
INFO: Runtime config file path is C:\ProgramData\Oracle\Java\java.settings.cfg
[2015/07/01 13:12:57.895, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), AllUtils.cpp:121 (logit)]
INFO: Runtime configuration file doesn't exist. It will be created later by settings_api.
[2015/07/01 13:12:57.895, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), InstallConfigData.cpp:493 (InstallConfigData::ImportArgsConfigSettings)]
TRACE: Entering InstallConfigData::ImportArgsConfigSettings
[2015/07/01 13:12:57.895, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), AllUtils.cpp:121 (logit)]
INFO: ...Importing command line arguments
[2015/07/01 13:12:57.895, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), InstallConfigData.cpp:546 (InstallConfigData::ImportArgsConfigSettings)]
INFO: ...adding MSICMDLINE to settingsConfig
[2015/07/01 13:12:57.895, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), InstallConfigData.cpp:0 (InstallConfigData::ImportArgsConfigSettings)]
TRACE: Exiting InstallConfigData::ImportArgsConfigSettings (entered at InstallConfigData.cpp:493)
[2015/07/01 13:12:57.895, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), InstallConfigData.cpp:603 (InstallConfigData::CheckParams)]
TRACE: Entering InstallConfigData::CheckParams
[2015/07/01 13:12:57.895, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), InstallConfigData.cpp:0 (InstallConfigData::CheckParams)]
TRACE: Exiting InstallConfigData::CheckParams (entered at InstallConfigData.cpp:603)
[2015/07/01 13:12:57.895, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), AllUtils.cpp:121 (logit)]
INFO: -->Adding CMDLINE to config...
[2015/07/01 13:12:57.895, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), AllUtils.cpp:121 (logit)]
INFO: -->Normalizing Export...
[2015/07/01 13:12:57.911, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), AllUtils.cpp:121 (logit)]
INFO: |------Config to export--------|

INSTALL_SILENT = 1
AUTO_UPDATE = 0
EULA = 0
NOSTARTMENU = 1
|-------------------------------------|

[2015/07/01 13:12:57.911, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), AllUtils.cpp:121 (logit)]
INFO: |------!!!!Working config!!!!--------|

INSTALL_SILENT = 1
STATIC = 1
AUTO_UPDATE = 0
SPONSORS = Enable
WEB_JAVA = 1
WEB_ANALYTICS = Enable
EULA = 0
OEMUPDATE = Disable
NOSTARTMENU = 1
REBOOT = 0
MSI_CMDLINE = REBOOT=0
CMDLINE = INSTALL_SILENT="1" STATIC="1" AUTO_UPDATE="0" WEB_JAVA="1" EULA="0" NOSTARTMENU="1"
|-------------------------------------|

[2015/07/01 13:12:57.911, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), Locales.cpp:317 (Locale::preferredLanguages)]
INFO: PreferredUILanguages: Vista+
[2015/07/01 13:12:57.973, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), AllUtils.cpp:121 (logit)]
INFO: Wrapper, check for reinstall case..
[2015/07/01 13:12:57.973, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), JavaEnvironment.cpp:472 (JavaEnvironment::detect)]
TRACE: Entering JavaEnvironment::detect
[2015/07/01 13:12:57.989, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), JavaEnvironment.cpp:0 (JavaEnvironment::detect)]
TRACE: Exiting JavaEnvironment::detect (entered at JavaEnvironment.cpp:472)
[2015/07/01 13:12:58.036, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), AllUtils.cpp:121 (logit)]
INFO: Wrapper: Extract MSI ...
[2015/07/01 13:12:58.285, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), NetUtils.cpp:93 (HttpConnection::connect)]
TRACE: HttpConnection::connect(url=https://javadl-esd-secure.oracle.com/update/1.8.0/1.8.0_60-ea-b21.xml)
[2015/07/01 13:13:01.313, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), NetUtils.cpp:222 (HttpConnection::connect)]
TRACE: HttpConnection::connect succeeded, size: 928 bytes
[2015/07/01 13:13:01.313, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), Locales.cpp:317 (Locale::preferredLanguages)]
INFO: PreferredUILanguages: Vista+
[2015/07/01 13:13:01.313, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), NetUtils.cpp:93 (HttpConnection::connect)]
TRACE: HttpConnection::connect(url=http://rps-svcs.sun.com/services/countrylookup)
[2015/07/01 13:13:01.344, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), NetUtils.cpp:222 (HttpConnection::connect)]
TRACE: HttpConnection::connect succeeded, size: 269 bytes
[2015/07/01 13:13:01.344, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), UpdateUtils.cpp:76 (GetCountry)]
INFO: Save Country Code NL after GetCountry()
[2015/07/01 13:13:01.344, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), Locales.cpp:317 (Locale::preferredLanguages)]
INFO: PreferredUILanguages: Vista+
[2015/07/01 13:13:01.344, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), wrapper.cpp:349 (WinMain)]
INFO: MSI command line: REBOOT=0 INSTALL_SILENT="1" STATIC="1" AUTO_UPDATE="0" WEB_JAVA="1" EULA="0" NOSTARTMENU="1"
[2015/07/01 13:13:01.344, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), AllUtils.cpp:121 (logit)]
INFO: ...Exporting config settings
[2015/07/01 13:13:01.344, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), AllUtils.cpp:121 (logit)]
INFO: ...Exporting config settings
[2015/07/01 13:13:01.344, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), AllUtils.cpp:121 (logit)]
INFO: Writing to the runtime config file.
[2015/07/01 13:13:01.344, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), AllUtils.cpp:121 (logit)]
INFO: Unable to install Java

Unable to open file C:\ProgramData\Oracle\Java\java.settings.cfg.
Check that the configuration file exists and that the path to the file is correct.
[2015/07/01 13:13:01.344, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), InstallConfigData.cpp:704 (InstallConfigData::ExportConfigSettings)]
ERROR: Fails on writing to the runtime config file.
[2015/07/01 13:13:01.344, jre-8u60-ea-bin-b21-windows-i586-23_jun_2015.exe (PID: 2072, TID: 336), AllUtils.cpp:121 (logit)]
INFO: Error occurred while exporting configuration settings. Exiting installer.


REPRODUCIBILITY :
This bug can be reproduced always.

CUSTOMER SUBMITTED WORKAROUND :
create empty file C:\ProgramData\Oracle\Java\java.settings.cfg before installation