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Did you try installing on a machine (virtual that is) without the Appvolumes agent? If you get a blue screen as well you can rule out Appvolumes as the issue. If you don't get a blue screen than and it works I would suggest raising a ticket with VMWare.
Thank you .
Oddly enough i think it may have been the whole 'block/unblock' "protection Microsoft puts on files downloaded the internet.
The person that extracted the zip didn't 'unblock' it first before unzipping. Thus we had a bunch of mixed blocked and unblocked files all over the place.
i ran a "ls -Recurse | unblock-file" and this time no Blue Screens after the install.. so who knows.. maybe a fluke.
That "protective" block seems like more trouble then its worth imo.