Setup Cannot Continue: The Microsoft Runtime DLL Installer Failed (VMware Tools Fix)

Installing VMware Tools on a Windows VM can stop almost immediately with:

Setup cannot continue. The Microsoft Runtime DLL installer failed to complete installation.

Setup cannot continue VMware Tools Installation

Before installing its own components, VMware Tools installs the Microsoft Visual C++ runtime. That step fails, and setup aborts with this message. The most common cause is a registry value pointing Common Files at a drive that doesn't exist inside the VM. The other causes are covered further down.

Applies to: VMware Tools 10.x – 12.x on Windows Server 2012 R2 – 2025 and Windows 10 / 11 guests (ESXi and VMware Workstation).

Step 1: Check the Program Files registry paths

Run this inside the VM in PowerShell:

Get-ItemProperty 'HKLM:\SOFTWARE\Microsoft\Windows\CurrentVersion' |
  Select-Object ProgramFilesDir, CommonFilesDir, 'CommonFilesDir (x86)', 'ProgramFilesDir (x86)'
Get-ItemProperty 'HKLM:\SOFTWARE\WOW6432Node\Microsoft\Windows\CurrentVersion' |
  Select-Object ProgramFilesDir, CommonFilesDir

Every value should point to a drive that exists in the VM, normally:

Value	Expected
`ProgramFilesDir`	`C:\Program Files`
`CommonFilesDir`	`C:\Program Files\Common Files`
`ProgramFilesDir (x86)`	`C:\Program Files (x86)`
`CommonFilesDir (x86)`	`C:\Program Files (x86)\Common Files`

A bad value typically looks like this:

HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows\CurrentVersion
CommonFilesDir = F:\Program Files\Common Files

These values get changed by templates that relocated Program Files, by Group Policy, or by a VM cloned from a machine with a different disk layout.

Step 2: Fix the value

Take a VM snapshot first (or export the key in regedit).
Open regedit and go to HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows\CurrentVersion.
Double-click CommonFilesDir and set it to a valid path, for example C:\Program Files\Common Files.
Fix any other value from the table that points to a missing drive, including the WOW6432Node copy.

Or in PowerShell:

Set-ItemProperty 'HKLM:\SOFTWARE\Microsoft\Windows\CurrentVersion' -Name CommonFilesDir -Value 'C:\Program Files\Common Files'

Step 3: Re-run VMware Tools with logging

Run setup again. If it still fails, run it with a verbose log so you can see the exact failing step:

setup64.exe /s /v "/qn REBOOT=R /l*v C:\Temp\vmtools-install.log"

Open the log and search for return value 3. The lines just above it show which component failed and why.

Microsoft Runtime DLL installer failed

Other causes when the registry is fine

A pending restart

If Windows Update or another installer is waiting for a restart, the Visual C++ runtime install can't replace files that are in use. Restart the VM and try again. This is the first thing to try if the registry values are correct.

Broken Visual C++ redistributables

Corrupted existing VC++ installs can block the runtime step. Download the latest supported Microsoft Visual C++ Redistributable (x64 and x86) from Microsoft, run Repair on the existing entries in Programs and Features (or install over them), restart, then run VMware Tools setup again.

TEMP pointing at a missing drive

Setup unpacks its files to %TEMP%. Check with echo %TEMP% in the VM. If it points at a missing or full drive, fix it in System Properties → Environment Variables.

"Microsoft Runtime DLLs cannot be installed on this operating system"

This variant means the VMware Tools version is too new for the guest OS, or the OS is missing prerequisite updates. Older Windows versions need their latest service pack and SHA-2 code-signing updates before current VMware Tools will install. Either patch the guest, or install an older VMware Tools release that supports that Windows version (check the VMware Tools release notes for supported guests).

FAQ

Is it safe to edit the CommonFilesDir registry value?

Yes, as long as you only change it to a path that exists. Take a snapshot first so you can roll back in seconds.

Do I need to restart after changing the registry?

Usually not. Run setup again straight away. If it still fails, restart the VM and try once more, because a pending restart is the second most common cause.

Can Group Policy cause this?

Yes. Policies or templates that redirect Program Files or Common Files to another drive will break the installer in any VM where that drive isn't present.