From the installation log, we can find the following error messages:
MSI (s) (4C:34) [11:54:46:907]: Invoking remote custom action. DLL: C:WindowsInstallerMSIEBB5.tmp, Entrypoint: WriteIIS7ConfigChanges
WriteIIS7ConfigChanges: Error 0x80070002: Site not found for create application
WriteIIS7ConfigChanges: Error 0x80070002: Failed to configure IIS application.
WriteIIS7ConfigChanges: Error 0x80070002: WriteIIS7ConfigChanges Failed.
CustomAction WriteIIS7ConfigChanges returned actual error code 1603 (note this may not be 100% accurate if translation happened inside sandbox)