SQL Server Failover cluster installation (Add Node) Failing due to Failure to check for updates

Hi All,

I have a SQL server failover cluster installation, the cluster installs fine on the firs node, however when adding a new node to the cluster the installation fails due to the following error.

I am aware that this has been covered in the post here (http://social.msdn.microsoft.com/Forums/sqlserver/en-US/d0800ccf-5ade-471c-8942-b7d43031478b/sql-2012-installation-error) and adding the flag UpdateEnabled=False

does indeed fix the problem, but it leaves the cluster in an unstable state, where one node has the intended service pack update and the other node doesnt. What I am looking for is the root cause to the problem and also a solution that does not involve UpdateEnabled = false.

Thanks in advance.

Overall summary:
  Final result:                  Failed: see details below
  Exit code (Decimal):           -2022834173
  Exit facility code:            1902
  Exit error code:               3
  Exit message:                  Setup encountered a failure while running job UpdateResult.
  Start time:                    2014-06-03 13:46:29
  End time:                      2014-06-03 13:46:48
  Requested action:              ComponentUpdate
  Exception help link:           http://go.microsoft.com/fwlink?LinkId=20476&ProdName=Microsoft+SQL+Server&EvtSrc=setup.rll&EvtID=50000&ProdVer=11.0.3000.0&EvtType=0xF4B846A1%400xBB814387&EvtType=0xF4B846A1%400xBB814387

Machine Properties:
  Machine name:                  UKFIL1840WINC1
  Machine processor count:       40
  OS version:                    Windows Server 2008 R2
  OS service pack:               Service Pack 1
  OS region:                     United Kingdom
  OS language:                   English (United States)
  OS architecture:               x64
  Process architecture:          64 Bit
  OS clustered:                  Yes

Package properties:
  Description:                   Microsoft SQL Server 2012 Service Pack 1
  ProductName:                   SQL Server 2012
  Type:                          RTM
  Version:                       11
  Installation location:         S:\2012\_enterprise_edition_sp1\x64\setup\
  Installation edition:          Enterprise

  Slipstream:                    True

Product Update Status:
  Failure to check for updates.
  Error message:
The following is an exception stack listing the exceptions in outermost to innermost order
Inner exceptions are being indented

Exception type: Microsoft.SqlServer.Chainer.ExtensionCommon.AsyncWorkflowExecutionException
    Message: 
        Setup encountered an unexpected failure when trying to run workflow SEARCHUPDATES.
    HResult : 0x876e0001
        FacilityCode : 1902 (76e)
        ErrorCode : 1 (0001)
    Data: 
      WorkflowId = SEARCHUPDATES
      WatsonData = Microsoft.SqlServer.Chainer.ExtensionCommon.AsyncWorkflowExecutionException@1
    Inner exception type: Microsoft.SqlServer.Setup.Chainer.Workflow.ActionExecutionException
        Message: 
                Access is denied. (Exception from HRESULT: 0x80070005 (E_ACCESSDENIED))
        HResult : 0x84b30001
                FacilityCode : 1203 (4b3)
                ErrorCode : 1 (0001)
        Data: 
          SQL.Setup.FailureCategory = ActionFailure
          DisableWatson = true
        Stack: 
                at Microsoft.SqlServer.Setup.Chainer.Workflow.ActionInvocation.ExecuteActionHelper(TextWriter statusStream, ISequencedAction actionToRun, ServiceContainer context)
                at Microsoft.SqlServer.Setup.Chainer.Workflow.ActionInvocation.ExecuteActionWithRetryHelper(WorkflowObject metaDb, ActionKey action, ActionMetadata actionMetadata, TextWriter statusStream)
                at Microsoft.SqlServer.Setup.Chainer.Workflow.ActionInvocation.InvokeAction(WorkflowObject metabase, TextWriter statusStream)
                at Microsoft.SqlServer.Setup.Chainer.Workflow.PendingActions.InvokeActions(WorkflowObject metaDb, TextWriter loggingStream)
                at Microsoft.SqlServer.Setup.Chainer.Workflow.ActionEngine.RunActionQueue()
                at Microsoft.SqlServer.Setup.Chainer.Workflow.Workflow.RunWorkflow(WorkflowObject workflowObject, HandleInternalException exceptionHandler)
                at Microsoft.SqlServer.Chainer.ExtensionCommon.ExecuteWorkflowAsyncAction.JobStart()
        Inner exception type: System.UnauthorizedAccessException
            Message: 
                        Access is denied. (Exception from HRESULT: 0x80070005 (E_ACCESSDENIED))
            HResult : 0x80070005
            Stack: 
                        at Microsoft.SqlServer.Configuration.SmartSetupExtension.MuSearchUtility.TrySearch(String serviceId, String query)
                        at Microsoft.SqlServer.Configuration.SmartSetupExtension.MuSearchEngine.Search(String serviceId, String query)
                        at Microsoft.SqlServer.Configuration.SmartSetupExtension.MuSetupSearchEngine.SearchUpdates()
                        at Microsoft.SqlServer.Configuration.SmartSetupExtension.SearchUpdatesAction.ExecuteAction(String actionId)
                        at Microsoft.SqlServer.Chainer.Infrastructure.Action.Execute(String actionId, TextWriter errorStream)
                        at Microsoft.SqlServer.Setup.Chainer.Workflow.ActionInvocation.ExecuteActionHelper(TextWriter statusStream, ISequencedAction actionToRun, ServiceContainer context)


User Input Settings:
  ACTION:                        ComponentUpdate
  CONFIGURATIONFILE:             
  ENU:                           true
  HELP:                          false
  IACCEPTSQLSERVERLICENSETERMS:  true
  INDICATEPROGRESS:              false
  PID:                           *****
  QUIET:                         true
  QUIETSIMPLE:                   false
  SQMREPORTING:                  false
  UIMODE:                        Normal
  X86:                           false

  Configuration file:            C:\Program Files\Microsoft SQL Server\110\Setup Bootstrap\Log\20140603_134606\ConfigurationFile.ini

Rules with failures:

Global rules:

There are no scenario-specific rules.

Rules report file:               C:\Program Files\Microsoft SQL Server\110\Setup Bootstrap\Log\20140603_134606\SystemConfigurationCheck_Report.htm

Exception summary:
The following is an exception stack listing the exceptions in outermost to innermost order
Inner exceptions are being indented

Exception type: Microsoft.SqlServer.Chainer.ExtensionCommon.JobExecutionException
    Message: 
        Setup encountered a failure while running job UpdateResult.
    HResult : 0x876e0003
        FacilityCode : 1902 (76e)
        ErrorCode : 3 (0003)
    Data: 
      JobId = UpdateResult
      WatsonData = Microsoft.SqlServer.Chainer.ExtensionCommon.JobExecutionException@3
      DisableWatson = true
    Stack: 
        at Microsoft.SqlServer.Chainer.ExtensionCommon.WaitForAsyncAction.ExecuteAction(String actionId)
        at Microsoft.SqlServer.Chainer.Infrastructure.Action.Execute(String actionId, TextWriter errorStream)
        at Microsoft.SqlServer.Setup.Chainer.Workflow.ActionInvocation.ExecuteActionHelper(TextWriter statusStream, ISequencedAction actionToRun, ServiceContainer context)
    Inner exception type: Microsoft.SqlServer.Chainer.ExtensionCommon.AsyncWorkflowExecutionException
        Message: 
                Setup encountered an unexpected failure when trying to run workflow SEARCHUPDATES.
        HResult : 0x876e0001
                FacilityCode : 1902 (76e)
                ErrorCode : 1 (0001)
        Data: 
          WorkflowId = SEARCHUPDATES
          WatsonData = Microsoft.SqlServer.Chainer.ExtensionCommon.AsyncWorkflowExecutionException@1
        Inner exception type: Microsoft.SqlServer.Setup.Chainer.Workflow.ActionExecutionException
            Message: 
                        Access is denied. (Exception from HRESULT: 0x80070005 (E_ACCESSDENIED))
            HResult : 0x84b30001
                        FacilityCode : 1203 (4b3)
                        ErrorCode : 1 (0001)
            Data: 
              SQL.Setup.FailureCategory = ActionFailure
              DisableWatson = true
            Stack: 
                        at Microsoft.SqlServer.Setup.Chainer.Workflow.ActionInvocation.ExecuteActionHelper(TextWriter statusStream, ISequencedAction actionToRun, ServiceContainer context)
                        at Microsoft.SqlServer.Setup.Chainer.Workflow.ActionInvocation.ExecuteActionWithRetryHelper(WorkflowObject metaDb, ActionKey action, ActionMetadata actionMetadata, TextWriter statusStream)
                        at Microsoft.SqlServer.Setup.Chainer.Workflow.ActionInvocation.InvokeAction(WorkflowObject metabase, TextWriter statusStream)
                        at Microsoft.SqlServer.Setup.Chainer.Workflow.PendingActions.InvokeActions(WorkflowObject metaDb, TextWriter loggingStream)
                        at Microsoft.SqlServer.Setup.Chainer.Workflow.ActionEngine.RunActionQueue()
                        at Microsoft.SqlServer.Setup.Chainer.Workflow.Workflow.RunWorkflow(WorkflowObject workflowObject, HandleInternalException exceptionHandler)
                        at Microsoft.SqlServer.Chainer.ExtensionCommon.ExecuteWorkflowAsyncAction.JobStart()
            Inner exception type: System.UnauthorizedAccessException
                Message: 
                                Access is denied. (Exception from HRESULT: 0x80070005 (E_ACCESSDENIED))
                HResult : 0x80070005
                Stack: 
                                at Microsoft.SqlServer.Configuration.SmartSetupExtension.MuSearchUtility.TrySearch(String serviceId, String query)
                                at Microsoft.SqlServer.Configuration.SmartSetupExtension.MuSearchEngine.Search(String serviceId, String query)
                                at Microsoft.SqlServer.Configuration.SmartSetupExtension.MuSetupSearchEngine.SearchUpdates()
                                at Microsoft.SqlServer.Configuration.SmartSetupExtension.SearchUpdatesAction.ExecuteAction(String actionId)
                                at Microsoft.SqlServer.Chainer.Infrastructure.Action.Execute(String actionId, TextWriter errorStream)
                                at Microsoft.SqlServer.Setup.Chainer.Workflow.ActionInvocation.ExecuteActionHelper(TextWriter statusStream, ISequencedAction actionToRun, ServiceContainer context)

The contents of one of the files in the installation log is as follows.