FULL PRODUCT VERSION :
jre 1.8.0 update 72 32 bit on 64 bit host

ADDITIONAL OS VERSION INFORMATION :
Windows 7 (64 bit)

A DESCRIPTION OF THE PROBLEM :
As already reported in JDK-8136438 installation of 32 bit jre fails on 64 bit host if executed as local machine account.

Please note that this is NOT a per-user installation, but an installation with probably the highest Admin Privileges (local system machine account).

I am voting to re-open that bug, as installing as system account is widely used in automated deployments.

All relevant information in JDK-8136438 and JDK-8130520 ( which where imho wrongly closed as wontfix)



STEPS TO FOLLOW TO REPRODUCE THE PROBLEM :
# run psexec to impersonate system account
psexec -s -i cmd.exe

# run installer
\path\to\jre-8u72-windows-i586.exe /s /log c:\temp\jre8.log

# note that running the exactly same command as Domain Administrator succeeds
# my guess is it has to do with the permissions of the path C:\Windows\system32\config\systemprofile\AppData\LocalLow\ which is has the "system" file attribute

EXPECTED VERSUS ACTUAL BEHAVIOR :
EXPECTED -
Installation succeeds
ACTUAL -
installation fails

ERROR MESSAGES/STACK TRACES THAT OCCUR :
=== Verbose logging started: 26.01.2016 21:01:48 Build type: SHIP UNICODE 5.00.7601.00 Calling process: \\server\install\jre\jre-8u72-windows-i586.exe ===
MSI (c) (24:B8) [21:01:48:409]: Resetting cached policy values
MSI (c) (24:B8) [21:01:48:409]: Machine policy value 'Debug' is 0
MSI (c) (24:B8) [21:01:48:409]: ******* RunEngine:
           ******* Product: C:\Windows\system32\config\systemprofile\AppData\LocalLow\Oracle\Java\jre1.8.0_72\jre1.8.0_72.msi
           ******* Action:
           ******* CommandLine: **********
MSI (c) (24:B8) [21:01:48:425]: Client-side and UI is none or basic: Running entire install on the server.
MSI (c) (24:B8) [21:01:48:425]: Grabbed execution mutex.
MSI (c) (24:B8) [21:01:48:425]: Cloaking enabled.
MSI (c) (24:B8) [21:01:48:425]: Attempting to enable all disabled privileges before calling Install on Server
MSI (c) (24:B8) [21:01:48:425]: Incrementing counter to disable shutdown. Counter after increment: 0
MSI (s) (D8:78) [21:01:48:425]: Running installation inside multi-package transaction C:\Windows\system32\config\systemprofile\AppData\LocalLow\Oracle\Java\jre1.8.0_72\jre1.8.0_72.msi
MSI (s) (D8:78) [21:01:48:425]: Grabbed execution mutex.
MSI (s) (D8:44) [21:01:48:425]: Resetting cached policy values
MSI (s) (D8:44) [21:01:48:425]: Machine policy value 'Debug' is 0
MSI (s) (D8:44) [21:01:48:425]: ******* RunEngine:
           ******* Product: C:\Windows\system32\config\systemprofile\AppData\LocalLow\Oracle\Java\jre1.8.0_72\jre1.8.0_72.msi
           ******* Action:
           ******* CommandLine: **********
MSI (s) (D8:44) [21:01:48:425]: Note: 1: 2203 2: C:\Windows\system32\config\systemprofile\AppData\LocalLow\Oracle\Java\jre1.8.0_72\jre1.8.0_72.msi 3: -2147287037
MSI (s) (D8:44) [21:01:48:425]: MainEngineThread is returning 3
MSI (s) (D8:78) [21:01:48:425]: User policy value 'DisableRollback' is 0
MSI (s) (D8:78) [21:01:48:425]: Machine policy value 'DisableRollback' is 0
MSI (s) (D8:78) [21:01:48:425]: Incrementing counter to disable shutdown. Counter after increment: 0
MSI (s) (D8:78) [21:01:48:425]: Note: 1: 1402 2: HKEY_LOCAL_MACHINE\Software\Microsoft\Windows\CurrentVersion\Installer\Rollback\Scripts 3: 2
MSI (s) (D8:78) [21:01:48:425]: Note: 1: 1402 2: HKEY_LOCAL_MACHINE\Software\Microsoft\Windows\CurrentVersion\Installer\Rollback\Scripts 3: 2
MSI (s) (D8:78) [21:01:48:425]: Note: 1: 1402 2: HKEY_LOCAL_MACHINE\Software\Microsoft\Windows\CurrentVersion\Installer\InProgress 3: 2
MSI (s) (D8:78) [21:01:48:425]: Note: 1: 1402 2: HKEY_LOCAL_MACHINE\Software\Microsoft\Windows\CurrentVersion\Installer\InProgress 3: 2
MSI (s) (D8:78) [21:01:48:425]: Decrementing counter to disable shutdown. If counter >= 0, shutdown will be denied. Counter after decrement: -1
MSI (s) (D8:78) [21:01:48:425]: Restoring environment variables
MSI (c) (24:B8) [21:01:48:425]: Decrementing counter to disable shutdown. If counter >= 0, shutdown will be denied. Counter after decrement: -1
MSI (c) (24:B8) [21:01:48:425]: MainEngineThread is returning 3
=== Verbose logging stopped: 26.01.2016 21:01:48 ===


REPRODUCIBILITY :
This bug can be reproduced always.

CUSTOMER SUBMITTED WORKAROUND :
I is possible to extract the MSI packages from the installer, but this is very inconvenient, because it is an error prone task that has to be repeadted for each new version