Error 193: 0xc1 is not a valid Win32 application (when installing SiteAdvisor Enterprise 3.5)

Deployment of SAE 3.5 fails on a few systems.

You see the following entry in the SAE_3.5.0_Setup.log:

Error 1920 the "McAfee SiteAdvisor Enterprise Service" (McAfee SiteAdvisor Enterprise Service) could not be started. Check that you have sufficient privileges to start system services.

You see the following error if you install locally (manually):

Could not start the McAfee SiteAdvisor Enterprise service on Local Computer.
Error 193: 0xc1 is not a valid Win32 application.

You see the following error in the Windows Event Viewer system log:

Event Type: Error
Event Source: Service Control Manager
Event Category: None
Event ID: 7000
User: N/A
Description:
The McAfee SiteAdvisor Enterprise service failed to start due to the following error:
McAfee SiteAdvisor Enterprise is not a valid Win32 application.

You see the following error in the Launch.log:

setup_SAE.exe: returned non-zero return code: 1603

You see the following error in the McScript_error.log:

E  #4580 CmdPrsr Error trace:
E  #4580 Thread  [Main thread]->
E  #4580 SessMgr  [SessionManager::runScript:C:\ProgramData\McAfee\Common Framework\InstallMain.McS]->
E  #4580 ScrptExe  [Executing section ScriptMain]->
E  #4580 ScrptExe  [Call]->
E  #4580 ScrptExe  [Executing section InstallAllProducts]->
E  #4580 ScrptExe  [LoopIf]->
E  #4580 ScrptExe  [Executing section InstallProduct]->
E  #4580 ScrptExe  [CallIf]->
E  #4580 ScrptExe  [Executing section ContinueProductInstallation]->
E  #4580 ScrptExe  [CallIf]->
E  #4580 ScrptExe  [Executing section ScriptInstall]->
E  #4580 ScrptExe  [Call]->
E  #4580 ScrptExe  [Executing section RunInstallScript]->
E  #4580 ScrptExe  [Line 1906:  RunScript dwRet = C:\ProgramData\McAfee\Common Framework\Current\SITEADV_3500\Install\0409\SiteAdvisorInst-3.5.0.573.2.McS, ScriptMain]->
E  #4580 CmdPrsr   Parse error line 41 column 9:  expected TEMP or TMP or WINDOWS or SYSTEM or SYSTEMDRIVE or USER or ALLUSERS or PROGRAM_FILES or PROGRAM_FILES_COMMON or DESKTOP or MYDOCUMENTS or COMMON_DOCUMENTS or STARTMENU or COMMON_STARTMENU or STARTUP or COMMON_STARTUP or CURRENT_SCRIPT or APPDIR or WINDIR or SYSTEMROOT

E  #616 ScrptExe Error trace:
E  #616 Thread  [Main thread]->
E  #616 SessMgr  [SessionManager::runScript:C:\ProgramData\McAfee\Common Framework\UpdateMain.McS]->
...
...
E  #616 ScrptExe  Failed to get the product information.  Setting usingEarlyRelDats to FALSE
...
...
E #2260 ScrptExe   Failed to get the product information.  Setting usingEarlyRelDats to FALSE