The installer is having a problem creating the file.
If installing on or using a less-conventional drive such as a flash drive, Setup seems to have difficulties and may refuse to allow file creation or access for some files.
We suspect it is a timing issue, where the drive responds too quickly or slowly from the expectations of a rotating-disk style hard drive and it incorrectly fails the operation.
If possible, installation to a standard (i.e. rotating media) type hard drive should work around the issue.
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