Error "This setup requires Windows update KB2999226" when installing Toad Intelligence Central (TIC) server (4309809)

When installing Toad Intelligence Central on a Windows 2012 R2 server, the following errors occur in sequence:

1.  "There is a problem with the Windows Installer Package. A Script required for this install to complete could not be run. Contact your support personnel or package vendor" | OK
2. "This setup requires Windows update KB2999226. Please install KB2999226 from https://support.microsoft.com/en-us/kb/2999226 and then run the installer again" | OK
3. "Fatal error during installation (ErrCode 0x80070643" 

On trying to install KB2999226 (instructions from error 2), the following error occurs:

        4. "The update is not applicable to your computer"