Posting answer to my own question as I found it here and was hidden in bottom somewhere - This is because the OS failed to install the required update Windows8.1-KB2999226-x64.msu. However, you can install it by extracting that update to a folder (e.g. XXXX), and execute following cmdlet.

Aug 10, 2015. I click 'download' and select and save the file entitled 'vcredist_x64.exe'. I install this file, without error. I close down all software, and restart the computer. I try running the OBS executable again. Same error message 'Your system is missing.

You can find the Windows8.1-KB2999226-x64.msu at below. C: ProgramData Package Cache 469A82B09E217DDCF849181A586DF1C97C0C5C85 packages Patch amd64 Windows8.1-KB2999226-x64.msu copy this file to a folder you like, and Create a folder XXXX in that and execute following commands from Admin command propmt wusa.exe Windows8.1-KB2999226-x64.msu /extract:XXXX DISM.exe /Online /Add-Package /PackagePath:XXXX Windows8.1-KB2999226-x64.cab vc_redist.x64.exe /repair last command need not be run. Just execute exe once again. This worked for me. I would like to give you a background on Universal CRT this would help you in understanding as to why the system should be updated before installing vc_redist.x64.exe.

• A large portion of the C-runtime moved into the OS in Windows 10 (ucrtbase.dll) and is serviced just like any other OS DLL (e.g. It is no longer serviced by Visual Studio directly. MSU packages are the file type for Windows Updates. • In order to get the Windows 10 Universal CRT to earlier OSes, Windows Update packages were created to bring this OS component downlevel. KB2999226 brings the Windows 10 RTM Universal CRT to downlevel platforms (Windows Vista through Windows 8.1).

KB3118401 brings Windows 10 November Update to the Universal CRT to downlevel platforms. • Windows XP (latest SP) is an exception here. Windows Servicing does not provide downlevel packages for that OS, so Visual Studio (Visual C++) provides a mechanism to install the UCRT into System32 via the VCRedist and MSMs. • The Windows Universal Runtime is included in the VC Redist exe package as it has dependency on the Windows Universal Runtime (KB2999226).

• Windows 10 is the only OS that ships the UCRT in-box. All prior OSes obtain the UCRT via Windows Update only. This applies to all Vista->8.1 and associated Server SKUs. For Windows 7, 8, and 8.1 the Windows Universal Runtime must be installed via KB2999226.

However it has a prerequisite update KB2919355 which contains updates that facilitate installing the KB2999226 package. Why does KB2999226 not always install when the runtime is installed from the redistributable? What could prevent KB2999226 from installing as part of the runtime? The UCRT MSU included in the VCRedist is installed by making a call into the Windows Update service and the KB can fail to install based upon Windows Update service activity/state: • If the machine has not updated to the required servicing baseline, the UCRT MSU will be viewed as being “Not Applicable”. Ensure KB2919355 is installed.

Also, there were known issues with KB2919355 so before this the following hotfix should be installed. KB2939087 KB2975061 • If the Windows Update service is installing other updates when the VCRedist installs, you can either see long delays or errors indicating the machine is busy. • This one can be resolved by waiting and trying again later (which may be why installing via Windows Update UI at a later time succeeds). • If the Windows Update service is in a non-ready state, you can see errors reflecting that.

• We recently investigated a failure with an error code indicating the WUSA service was shutting down. • To identify if the prerequisite KB2919355 is installed there are 2 options: • Registry key: 64bit hive HKLM SOFTWARE Microsoft Windows CurrentVersion Component Based Servicing Packages Package_for_KB2919355~31bf3856ad364e35~amd64~~6.3.1.14 CurrentState = 112 32bit hive HKLM SOFTWARE [WOW6432Node ]Microsoft Windows CurrentVersion Component Based Servicing Packages Package_for_KB2919355~31bf3856ad364e35~x86~~6.3.1.14 CurrentState = 112 • Or check the file version of: C: Windows SysWOW64 wuaueng.dll C: Windows System32 wuaueng.dll is 7.9.9600.17031 or later. I faced a similar problem but in my case I was trying to install Visual C++ Redistributable for Visual Studio 2015 Update 1 on Windows Server 2012 R2. However the root cause should be the same. In short, you need to install the prerequisites of KB2999226.

In more details, the installation log I got stated that the installation for Windows Update KB2999226 failed. According to the Microsoft website: Prerequisites To install this update, you must have installed in Windows 8.1 or Windows Server 2012 R2.

After I have installed April 2014 on my Windows Server 2012 R2, I am able to install the Visual C++ Redistributable correctly. In my case and while installing VS 2015 on Windows7 64x SP1, I experienced the same so tried to cancel and download/install the KBKB2999226 separately and for some reason the standalone update installer also get stuck searching for updates. Here what I did: • When the VS installer stuck at the KB2999226 update I clicked cancel. • Installer took me back to confirm cancellation, waited for a while then opened the windows task manager and ended the process of wuse.exe (windows standalone update installer) • On the VS installer clicked 'No' to return to installation process.

The process was completed without errors.

Workaround 3: Perform a local installation of the Backup Exec Remote Agent by copying the RAWS and VCRedist folder to C: on the remote server. For more information about how to perform a local installation see: Workaround 4: Known issue #3 with Microsoft Security Update and Update installed. Backup Exec Remote Agent Install Log reports: Return Value of Microsoft Visual C++ 2008 Redistributable (x64): 1603 V-225-297: ERROR: Failed to execute VC 9.0 runtime installer. Error code 1603. ***To search for information about this error, click here Review this log file for details: C: ProgramData Symantec Backup Exec Logs V9.0_x64_msruntime_install.log The return value for Microsoft VC++ Redistributables (x64) returned error code: 1603 The 'msruntime_install.log' reports: Assembly Error: Access is denied.

Note: 1: 1935 2: 74C57B6B-FF6E-3825-BED2-78E14E3E0E3C 3: 0x80070005 4: IAssemblyCache 5: CreateAssemblyCacheItem 6: Microsoft.VC90.ATL,version='9.0.' ,publicKeyToken='1fc8b3b9a1e18e3b',processorArchitecture='amd64',type='win32' Assembly Error (sxs): To get more diagnostic information, enable the Component Based Servicing Log. Bubble Bobble Featuring Rainbow Islands Game Boy. Product: Microsoft Visual C++ 2008 Redistributable - x64 9.0. -- Error 1935.An error occurred during the installation of assembly Grant “ Full Control” to the “ System” account on “ C: Windows Winsxs Installtemp” and run the Remote Agent install again.