I did some testing and it looks like a IE Doc Mode 8 issue.
I did a fresh install in a new SP 2010 and got the same error as described above. When I did a test in SP 2013, the installer worked correctly. Looking at the Dev Console I see our 2013 environment sets the document mode to 10. When I switched to IE 8 Document mode I received that same error as the 2010 sites. See below screenshots.