1896987 - Msiexec finishes with return code 1612 during Diagnostic Agent Installation

During Diagnostic Agent installation, SWPM procedure stops due to an error and the following error message can be found in sapinst_dev.log:

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ERROR <timestamp> (<Domain>\<User>) (startInstallation) [bas/bas/749_REL/bc_749_REL/src/ins/SAPINST/impl/src/modlib/iaxxbjsmod.cpp:83] id=osmod.msi.msiexecError errno=MOS-01257
Running 'msiexec' failed with return code 1612: The installation source for this product is not available. Verify that the source exists and that you can access it.<p>Commandline was: <msiexec.exe /norestart /L vcredist_x64.log /i vcredist_x64.msi /qn>

ERROR <timestamp> (<Domain>\<User>) (startInstallation) [bas/bas/749_REL/bc_749_REL/src/ins/SAPINST/impl/src/sapinst/CSiStepExecute.cpp:1108] id=controller.stepExecuted errno=FCO-00011 CSiStepExecute::execute()
The step <step_name> with step key |NW_DiagnosticsAgent|ind|ind|ind|ind|0|0|NW_First_Steps|ind|ind|ind|ind|firstSteps|0|NW_Update_DLLs|ind|ind|ind|ind|dll|0|ntpatch was executed with status ERROR (Last error reported by the step: Running 'msiexec' failed with return code 1612: The installation source for this product is not available. Verify that the source exists and that you can access it.<p>Commandline was: <msiexec.exe /norestart /L vcredist_x64.log /i vcredist_x64.msi /qn>).
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Windows Operating System

AddPrivileges, The step has requested the termination of the service execution, SAP MMC SnapIn -- Installation failed, The installer has encountered an unexpected error installing this package,  RRCA_CANCELNEWERVERSION , KBA , SV-SMG-INS-AGT , Installation of Solution Manager Diagnostics Agent , BC-INS-NT , SAP Netweaver based Solutions on Windows , Problem