Dirsync agent fails to install and start on the user's workstation, error: "Error 1920" (4321291)

This is the error in the Event viewer. The install is performed using an administrator account.

Service cannot be started. System.FormatException: String was not recognized as a valid Boolean.
   at System.Boolean.Parse(String value)

And another message we see "Error 1920. Service On Demand Migration for Active Directory Agent (ODMActiveDirectory) failed to start. Verify that you have sufficient privileges to start system services"

What is causing this?