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Microsoft SQL Server Express LocalDB / Windows Azure Powershell install fail - SQL writer failed to start

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I'm trying to install Windows Azure PowerShell on my Windows 7 SP1 Enterprise laptop. As a prerequisite, it needs to install Microsoft SQL Server 2012 Express LocalDB, I but keep receiving an error:

Service 'SQL Server VSS Writer' (SQLWriter) failed to start. Verify that you have
sufficient privileges to start system services.

The service that it tries to use by default is the Local Service. I verified that it has log on as a service privileges and even did a restart. Same error.

any ideas?

Cross posted in Windows Azure


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