Error 997. Overlapped I/O operation is in progress: KB2918614 breaks Windows Installer Service

Certain MSI packages may fail with an error "Error 997. Overlapped I/O operation is in progress"

As per the MSI log:

MSI (s) (44:48) [15:07:21:799]: Determining source type
MSI (s) (44:48) [15:07:21:799]: Source type from package ‘My_Package.msi’: 2
MSI (s) (44:48) [15:07:21:799]: SECREPAIR: Hash Database: C:\Windows\Installer\SourceHash{AC1B6088-A6FC-9CDA-ABF2-60530F5DA203}
MSI (s) (44:48) [15:07:21:799]: Note: 1: 2262 2: SourceHash 3: -2147287038
MSI (s) (44:48) [15:07:21:815]: SECREPAIR: New Hash Database creation complete.
MSI (s) (44:48) [15:07:21:815]: SECREPAIR: A general error running CryptAcquireContext
MSI (s) (44:48) [15:07:21:815]: SECREPAIR: Crypt Provider not initialized. Error:997
MSI (s) (44:48) [15:07:21:815]: SECUREREPAIR: Failed to CreateContentHash of the file: My_Package.msi: for computing its hash. Error: 997
MSI (s) (44:48) [15:07:21:815]: SECREPAIR: Failed to create hash for the install source files
MSI (s) (44:48) [15:07:21:815]: Note: 1: 2262 2: SourceHash 3: -2147287038
MSI (s) (44:48) [15:07:21:815]: SECUREREPAIR: SecureRepair Failed. Error code: 3e5E99334B8
MSI (c) (A0:8C) [15:07:21:877]: Font created.  Charset: Req=0, Ret=0, Font: Req=MS Shell Dlg, Ret=MS Shell Dlg Error 997. Overlapped I/O operation is in progress.
MSI (s) (44:48) [15:07:30:769]: Note: 1: 2205 2:  3: Error
MSI (s) (44:48) [15:07:30:769]: Note: 1: 2228 2:  3: Error 4: SELECT `Message` FROM `Error` WHERE `Error` = 1709

As per the application Event log:

Log Name:      Application
Source:        MsiInstaller
Date:          2014-09-05 15:07:30
Event ID:      10997
Task Category: None
Level:         Error
Keywords:      Classic
User:          S-1-5-21-1655003508-46252071-1983596133-179088
Computer:      My_Machine

The description for Event ID 10997 from source MsiInstaller cannot be found. Either the component that raises this event is not installed on your local computer or the installation is corrupted. You can install or repair the component on the local computer. 

If the event originated on another computer, the display information had to be saved with the event.
The following information was included with the event:
Product: My_Package — Error 997. Overlapped I/O operation is in progress.

This is a known issue with the security patch KB2918614 released on 12th August. This issue occurs because update 2918614 uses cryptographic keys and certificates for hashing the installation files together with the logged-in user profile. However, cryptographic keys and certificates cannot be used by mandatory or temporary user profiles. Therefore, when a user uses a mandatory or temporary user profile to install any MSI package, the MSI package installation fails and the error message returns.

Resolution: Please apply this hotfix

P.S. An official fix is in testing and being tracked for release in November patch Tuesday(14-11). There could be some changes due to unexpected events.

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