2294745 - Error "The system cannot find the file specified" occurs in step Byte Code Adapter Installation

Following error occur in step "Byte Code Adapter Installation" or ISAdmin page:

Introscope Agent connector generated using JDK at: "<JVM path>"
Failed to create Introscope Agent connector at: E:\usr\sap\DAA\SMDA98\SMDAgent\applications.config\com.sap.smd.agent.application.wily\BytecodeAgent\ISAGENT.8.2.4.0-2012-06-26\wily\connectors - java.io.IOException: CreateProcess error=2, The system cannot find the file specified

The SMDAgentApplication in debug mode shows the complete log:
[Thread[ExRun:default_2,5,default:ExecTG] ] Info J9Detector parameters:<JVM path>\bin\java.exe -cp E:\usr\sap\DAA\SMDA98\SMDAgent\applications\com.sap.smd.agent.application.wily_7.10.12.5.20150811113332\lib\tc~smd~agent~application~wily_api.jar;E:\usr\sap\DAA\SMDA98\SMDAgent\applications\com.sap.smd.agent.application.wily_7.10.12.5.20150811113332\lib\web.jar com.sap.smd.vm.J9Detector -jvm "<JVM path>"
[Thread[ExRun:default_2,5,default:ExecTG] ] Info J9Detector exception:java.io.IOException: CreateProcess error=2, The system cannot find the file specified

SAP Solution Manager 7.1

KBA , SV-SMG-DIA-WLY-BCA , Byte Code Agent Setup , Problem