JRE install fails on Windows in System account, if C:\ProgramData\Oracle\Java\java.settings.cfg is missing

 Customer reported that the behaviour is reproducible on 32-bit and 64-bit Windows.
 The below log files show 32-bit Windows only.

 0. Experimental setup
 ---------------------
 Assume Java SE is to be installed for the first time ever on a newly
 installed Windows box.
 In order to simulate this scenario, the following directory is
 completely removed:
 C:\ProgramData\Oracle\Java

C:\> dir C:\ProgramData\Oracle\Java
 Volume in drive C has no label.
 Volume Serial Number is B4D9-70E6

 Directory of C:\ProgramData\Oracle

File Not Found

C:\>

 The following file 'java_install.cfg' is used:

C:\> more C:\java_install.cfg
AUTO_UPDATE=0
EULA=0
INSTALL_SILENT=1
SPONSORS=0
WEB_ANALYTICS=0


 1. Installing in Administrator account works fine
 -------------------------------------------------
 The following works fine:
 
C:\> jre-8u60-windows-i586.exe INSTALLCFG=C:\java_install.cfg
/L 8u60-install.log REBOOT=ReallySuppress

  likewise:

C:\> jre-8u51-windows-i586.exe INSTALLCFG=C:\java_install.cfg
/L 8u51-install.log REBOOT=ReallySuppress


 2. Installing in System account fails
 -------------------------------------
 The following behaviour was reproduced with 8u25, 8u31, 8u40, 8u45, 8u51 and 8u60.
 The command prompt of the install command comes back immediately.
 The directory "C:\ProgramData\Oracle\Java" is created after a
 short time.
 Java SE is not installed.
 No install log file is being left behind.

 
 (1) Execute "psexec -s cmd", which creates a shell in System account
     which identifies itself via:

PsExec v2.11 - Execute processes remotely
Copyright (C) 2001-2014 Mark Russinovich
Sysinternals - www.sysinternals.com

C:\Windows\system32>

 (2) carry out the following steps:

C:\> dir C:\ProgramData\Oracle\Java
 Volume in drive C has no label.
 Volume Serial Number is B4D9-70E6

 Directory of C:\ProgramData\Oracle

File Not Found

C:\ more C:\java_install.cfg
AUTO_UPDATE=0
EULA=0
INSTALL_SILENT=1
SPONSORS=0
WEB_ANALYTICS=0

C:\> jre-8u60-windows-i586.exe INSTALLCFG=C:\java_install.cfg
/L 8u60-install-20150923-sys.log REBOOT=ReallySuppress

C:\>
C:\> Rem The command prompt comes back immediately.

C:\> dir C:\ProgramData\Oracle\Java
 Volume in drive C has no label.
 Volume Serial Number is B4D9-70E6

 Directory of C:\ProgramData\Oracle\Java

File Not Found

C:\> dir 8u60*
 Volume in drive C has no label.
 Volume Serial Number is B4D9-70E6

 Directory of C:\

File Not Found

C:\> Rem A bit later directory is created ...
C:\> dir C:\ProgramData\Oracle\Java
 Volume in drive C has no label.
 Volume Serial Number is B4D9-70E6

 Directory of C:\ProgramData\Oracle\Java

09/23/2015 01:40 PM <DIR> .
09/23/2015 01:40 PM <DIR> ..
               0 File(s) 0 bytes
               2 Dir(s) 3,315,851,264 bytes free

C:\> dir 8u60*
 Volume in drive C has no label.
 Volume Serial Number is B4D9-70E6

 Directory of C:\

File Not Found

C:\> Rem Java SE did not install
C:\> java -version
'java' is not recognized as an internal or external command,
operable program or batch file.

C:\

 3. Workaround in System account
 -------------------------------
 create directory "C:\ProgramData\Oracle\Java" manually
 copy file "java_install.cfg" manually into "C:\ProgramData\Oracle\Java"
 The command prompt of the install command comes back immediately.
 Java SE is installed after a while..
 The install log file is left behind as expected.

C:\> dir C:\ProgramData\Oracle\Java
 Volume in drive C has no label.
 Volume Serial Number is B4D9-70E6

 Directory of C:\ProgramData\Oracle\Java

09/23/2015 02:06 PM <DIR> .
09/23/2015 02:06 PM <DIR> ..
               0 File(s) 0 bytes
               2 Dir(s) 2,948,214,784 bytes free

C:\> copy C:\java_install.cfg C:\ProgramData\Oracle\Java\java.settings.cfg
        1 file(s) copied.

C:\> dir C:\ProgramData\Oracle\Java
 Volume in drive C has no label.
 Volume Serial Number is B4D9-70E6

 Directory of C:\ProgramData\Oracle\Java

09/23/2015 02:09 PM <DIR> .
09/23/2015 02:09 PM <DIR> ..
09/16/2015 09:50 AM 70 java.settings.cfg
               1 File(s) 70 bytes
               2 Dir(s) 2,947,624,960 bytes free

C:\> more C:\java_install.cfg
AUTO_UPDATE=0
EULA=0
INSTALL_SILENT=1
SPONSORS=0
WEB_ANALYTICS=0

C:\> jre-8u60-windows-i586.exe INSTALLCFG=C:\java_install.cfg
/L 8u60-install-20150923-sys.log REBOOT=ReallySuppress

C:\>
C:\> Rem The command prompt comes back immediately.

dir C:\ProgramData\Oracle\Java
 Volume in drive C has no label.
 Volume Serial Number is B4D9-70E6

 Directory of C:\ProgramData\Oracle\Java

09/23/2015 02:12 PM <DIR> .
09/23/2015 02:12 PM <DIR> ..
09/23/2015 02:12 PM <DIR> installcache
09/16/2015 09:50 AM 70 java.settings.cfg
               1 File(s) 70 bytes
               3 Dir(s) 2,709,913,600 bytes free

C:\> java -version
'java' is not recognized as an internal or external command,
operable program or batch file.

C:\> java -version
'java' is not recognized as an internal or external command,
operable program or batch file.

C:\> java -version
java version "1.8.0_60"
Java(TM) SE Runtime Environment (build 1.8.0_60-b27)
Java HotSpot(TM) Client VM (build 25.60-b23, mixed mode, sharing)

C:\>