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Hi Alex,
Thank you for the additional information. I still have no clue about what might be going on...
Do you have UAC-related policies configured, by any chance?
Could you try running FlexEngine.exe -r from the C:\Program Files\Immidio\Flex Profiles folder, and check if you still get the FlexUtils::ExecuteCommand: Error 5 calling '"C:\Windows\REGEDIT.EXE" errors in the log?
BTW, I'm sure it's unrelated to this issue, but Horizon 7.0 is not supported on Windows 10, Version 1703.