DPM 2012 R2 Update rollup 3 - unable to upgrade agent from 4.2.1217 to 4.2.1254

Question

Fully updated DPM 2k12 R2. Have some protection groups with total of 11 servers in it (mainly w2k12 r2 servers and w2k8 r2 servers). After update rollup 3 try to update agents on protected servers. All agents excluding one were updated.
Update can't be performed on one w2k12 r2 server, which is also used as hypervisor. Hw is X3650_m2, common config. When try to update via DPM console (od manually), still same error. 
Scenario: try to install agent update manualy. On protected server, copied agent install files (DPMAgentInstaller_KB2966014_AMD64.exe + 3 other files) to local drive. Run as domain admin user from elevated prompt. Install fail with error 0x80070643.
Does not matter how level of magic I try to put on it.
So, I studied log files (%windir%\temp\msdpm*.log, particulary MSDPMAgentPatchInstall.LOG. This is a long file, so I extract interesting parts, where installer indicated error:
MSI (s) (E4:D0) [09:55:31:963]: Invoking remote custom action. DLL: C:\Windows\Installer\MSI85E7.tmp, Entrypoint: InstallProvider
InstallProvider entered.
UnInstallProviderCatalogAndDLL entered.
StopServiceAndChangeStartType returned Error code = 0x00000000
Error in UnInstallProviderCatalogAndDLL. hr=0x8004e00f
CustomAction _InstallProvider.E785582E_DD9D_4A85_B866_3A1BC05C6110 returned actual error code 1603 (note this may not be 100% accurate if translation happened inside sandbox)
After that, rollback starting, so next part of log is not as interesting. Another interesting file is file named MSDPMAgentBootstrap0Curr.errlog, also in temp directory. File contained some (maybe) interesting infos,
try to past all of them because is not too long:
1C44    1F90    09/24    07:55:31.932    10    setupdpmfltr.cpp(860)            NORMAL    dpmfltr driver path [C:\Windows\system32\drivers\dpmfilter.sys]
1C44    1F90    09/24    07:55:31.932    10    setupdpmfltr.cpp(1045)            NORMAL    versionBufferSize returned
by GetFileVersionInfoSize = 2292
1C44    1F90    09/24    07:55:31.932    10    setupdpmfltr.cpp(1071)            NORMAL    Hr: = [0x00000000] QueryFileVersion
returning
1C44    1F90    09/24    07:55:31.932    10    setupdpmfltr.cpp(883)            NORMAL    The dpmfltr is present and driver
version is [4.2.1176.0]
1C44    1F90    09/24    07:55:31.947    10    setupdpmfltr.cpp(1045)            NORMAL    versionBufferSize returned
by GetFileVersionInfoSize = 2292
1C44    1F90    09/24    07:55:31.947    10    setupdpmfltr.cpp(1071)            NORMAL    Hr: = [0x00000000] QueryFileVersion
returning
1C44    25E4    09/24    07:55:31.979    10    main.cpp(1958)            WARNING    Failed: Hr: = [0x80070426] StopService
failed for service[vss] and returned
1C44    25E4    09/24    07:55:31.979    10    main.cpp(1848)            WARNING    Trying to open windows service failed
for Service = [VssNullProvider]
1C44    25E4    09/24    07:55:31.979    10    main.cpp(1849)            WARNING    Failed: Hr: = [0x80070424] : Encountered
Failure: : lVal : hr
1C44    25E4    09/24    07:55:31.979    10    main.cpp(2007)            WARNING    Failed: Hr: = [0x80070424] : Encountered
Failure: : lVal : GetServiceHandle(schSCManager, lpService, hService)
1C44    25E4    09/24    07:55:32.041    10    main.cpp(6876)            WARNING    Failed: Hr: = [0x8004e00f] : Encountered
Failure: : lVal : pCOMAdminCatalog->GetCollection(bsApplications, (IDispatch**)&pAppsCatalogCollection)
1C44    38D8    09/24    07:55:34.588    10    main.cpp(1958)            WARNING    Failed: Hr: = [0x80070426] StopService
failed for service[vss] and returned
1C44    38D8    09/24    07:55:34.588    10    main.cpp(1848)            WARNING    Trying to open windows service failed
for Service = [VssNullProvider]
1C44    38D8    09/24    07:55:34.588    10    main.cpp(1849)            WARNING    Failed: Hr: = [0x80070424] : Encountered
Failure: : lVal : hr
1C44    38D8    09/24    07:55:34.588    10    main.cpp(2007)            WARNING    Failed: Hr: = [0x80070424] : Encountered
Failure: : lVal : GetServiceHandle(schSCManager, lpService, hService)
1C44    38D8    09/24    07:55:34.775    10    main.cpp(6876)            WARNING    Failed: Hr: = [0x8004e00f] : Encountered
Failure: : lVal : pCOMAdminCatalog->GetCollection(bsApplications, (IDispatch**)&pAppsCatalogCollection)
1C44    3340    09/24    07:55:34.994    10    main.cpp(6623)            NORMAL    AccountName for WinLocalSystemSid =
NT AUTHORITY\SYSTEM
1C44    3340    09/24    07:55:34.994    10    main.cpp(6636)            NORMAL    AccountName for WinBuiltinAdministratorsSid
= BUILTIN\Administrators
1C44    3340    09/24    07:55:35.213    10    main.cpp(6647)            WARNING    Failed: Hr: = [0x8004e00f] : Encountered
Failure: : lVal : pCOMAdminCatalog->GetCollection(bsApplications, (IDispatch**)&pAppsCatalogCollection)
Please note, that time in thist file is UTC and is shifted 2 hours against MSDPMAgentPatchInstall.log. Then, I begun to study event viewer.
There are also some track of this failed install. Especially EventID 1000 - Application Error from MsiEXEC:
Faulting application name: MsiExec.exe, version: 5.0.9600.16384, time stamp: 0x5215f49e
Faulting module name: MSI91B2.tmp, version: 4.2.1254.0, time stamp: 0x53ce7a5f
Exception code: 0xc0000005
Fault offset: 0x000000000004bfc6
Faulting process id: 0x1c44
Faulting application start time: 0x01cfd7cce8e8f583
Faulting application path: C:\Windows\System32\MsiExec.exe
Faulting module path: C:\Windows\Installer\MSI91B2.tmp
Report Id: 29d33452-43c0-11e4-80de-02215ecc909f
Faulting package full name:
Faulting package-relative application ID:
Another steps allready tryed:
- uninstall agent 4.2.1217 - OK
- restart server
- install agent 4.2.1254 from scratch - same error
- install 4.2.1217 again - OK
- restart server
- install 4.2.1254 again - same error
I'm clueless.
Kamil Ondrus

Answer 1

After long fight I find out, that problem is MS DTC failing on this server, because message about MSDTC (Distributed Transaction Coordinator - in services) was right before installer fail.
So root cause was that service MSDTC was not able to start. Start digging out, event viewer contains cca 4 messages from MSDTC, and one of them pointet me to log file. Seems MSDTC service have not proper right to log file under %WINDIR%\System32\MsDtc\MsDtc.log
Because service runs under "NetworkService" account, I granted rights for it using "icacls /grant  %WINDIR%\System32\MsDtc\MsDtc.log 'Networkservice':F
Maybe command is not written ok, sorry for that - did it very late yesterday, but many posts on net talks about it, look:
http://www.progtown.com/topic376230-msdtc-error.html
http://stackoverflow.com/questions/10461354/msdtc-encountered-an-error-hr-0x80000171-while-attempting-to-establish-a-secur
Kamil Ondrus