"Wait on the Database Engine recovery handle failed" occurs when install SQL Server 2014 on Windows 2012 R2 Cluster

I run into "Wait on the Database Engine recovery handle failed" error when installing SQL Server 2014 on Windows 2012 R2 Cluster. I click OK, the installation continues. After installation, found the SQL Server Service is installed but not started. Below are error log.

Some people from internet suggest to reinstall SQL Server and change the sql server service account to NT Authority/Network Service, or some local account. This solution doesn't work for me as the Cluster installation wizard doesn't access local account as service account. 

Below are error message from Installation Summary Log file.

Exception type: Microsoft.SqlServer.Configuration.SmartSetupExtension.MuAddServerException
    Message:
        SQL Server Setup failed to register the Microsoft Update service. This may indicate that the Windows Update service does not have online access to the Microsoft Update server or Windows Server Update Services.
    HResult : 0x85190002
        FacilityCode : 1305 (519)
        ErrorCode : 2 (0002)
    Data:
      WatsonData = Microsoft.SqlServer.Configuration.SmartSetupExtension.MuAddServerException@2
    Stack:
        at Microsoft.SqlServer.Configuration.SmartSetupExtension.MuSetupSearchEngine.SelectServer()
        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.<>c__DisplayClasse.<ExecuteActionWithRetryHelper>b__b()
        at Microsoft.SqlServer.Setup.Chainer.Workflow.ActionInvocation.ExecuteActionHelper(ActionWorker workerDelegate)
    Inner exception type: Microsoft.SqlServer.Configuration.SmartSetupExtension.WuaAddServiceException
        Message:
                Failed to register service '7971f918-a847-4430-9279-4a52d1efe18d' with Windows Update Agent. Error: Exception from HRESULT: 0x80072EE2
        HResult : 0x85170002
                FacilityCode : 1303 (517)
                ErrorCode : 2 (0002)
        Data:
          ServiceID = 7971f918-a847-4430-9279-4a52d1efe18d
          ErrorMessage = Exception from HRESULT: 0x80072EE2
          WatsonData = Microsoft.SqlServer.Configuration.SmartSetupExtension.WuaAddServiceException@2
        Stack:
                at Microsoft.SqlServer.Configuration.SmartSetupExtension.WuaUpdateServiceManager.AddService(String serviceID)
                at Microsoft.SqlServer.Configuration.SmartSetupExtension.MuSearchUtility.GetManagedOrWuService(ServiceContainer context)
        Inner exception type: System.Runtime.InteropServices.COMException
            Message:
                        Exception from HRESULT: 0x80072EE2
            HResult : 0x80072ee2
            Stack:
                        at Microsoft.SqlServer.Interop.WUApiLib.UpdateServiceManagerClass.AddService2(String ServiceID, Int32 flags, String authorizationCabPath)
                        at Microsoft.SqlServer.Configuration.SmartSetupExtension.WuaUpdateServiceManager.AddService(String serviceID)

But the Cluster for SQL Server is up and running. see screenshot below.



So I try to start the SQL Server Engine service from SQL Server Configuration Manager. Got error message below.

2016-09-28 23:20:47.01 Server      Microsoft SQL Server 2014 (SP2) (KB3171021) - 12.0.5000.0 (X64)
	Jun 17 2016 19:14:09
	Copyright (c) Microsoft Corporation
	Enterprise Edition (64-bit) on Windows NT 6.3 <X64> (Build 9600: ) (Hypervisor)

2016-09-28 23:20:47.01 Server      UTC adjustment: -4:00
2016-09-28 23:20:47.01 Server      (c) Microsoft Corporation.
2016-09-28 23:20:47.01 Server      All rights reserved.
2016-09-28 23:20:47.01 Server      Server process ID is 976.
2016-09-28 23:20:47.01 Server      System Manufacturer: 'innotek GmbH', System Model: 'VirtualBox'.
2016-09-28 23:20:47.01 Server      Authentication mode is MIXED.
2016-09-28 23:20:47.01 Server      Logging SQL Server messages in file 'I:\SQLData\MSSQL12.SQLINST01\MSSQL\Log\ERRORLOG'.
2016-09-28 23:20:47.01 Server      The service account is 'SQL\fid.sqlengine'. This is an informational message; no user action is required.
2016-09-28 23:20:47.01 Server      Registry startup parameters:
	 -d I:\SQLData\MSSQL12.SQLINST01\MSSQL\DATA\master.mdf
	 -e I:\SQLData\MSSQL12.SQLINST01\MSSQL\Log\ERRORLOG
	 -l I:\SQLData\MSSQL12.SQLINST01\MSSQL\DATA\mastlog.ldf
2016-09-28 23:20:47.01 Server      Command Line Startup Parameters:
	 -s "MSSQLSERVER"
2016-09-28 23:20:47.30 Server      SQL Server detected 1 sockets with 1 cores per socket and 1 logical processors per socket, 1 total logical processors; using 1 logical processors based on SQL Server licensing. This is an informational message; no user action is required.
2016-09-28 23:20:47.30 Server      SQL Server is starting at normal priority base (=7). This is an informational message only. No user action is required.
2016-09-28 23:20:47.30 Server      Detected 6143 MB of RAM. This is an informational message; no user action is required.
2016-09-28 23:20:47.30 Server      Using conventional memory in the memory manager.
2016-09-28 23:20:47.32 Server      Default collation: SQL_Latin1_General_CP1_CI_AS (us_english 1033)
2016-09-28 23:20:47.37 Server      This instance of SQL Server last reported using a process ID of 4092 at 2016-09-28 11:20:39 PM (local) 2016-09-29 3:20:39 AM (UTC). This is an informational message only; no user action is required.
2016-09-28 23:20:47.37 Server      Node configuration: node 0: CPU mask: 0x0000000000000001:0 Active CPU mask: 0x0000000000000001:0. This message provides a description of the NUMA configuration for this computer. This is an informational message only. No user action is required.
2016-09-28 23:20:47.37 Server      Using dynamic lock allocation.  Initial allocation of 2500 Lock blocks and 5000 Lock Owner blocks per node.  This is an informational message only.  No user action is required.
2016-09-28 23:20:47.37 Server      Database Instant File Initialization: enabled. For security and performance considerations see the topic 'Database Instant File Initialization' in SQL Server Books Online. This is an informational message only. No user action is required.
2016-09-28 23:20:47.38 Server      The maximum number of dedicated administrator connections for this instance is '1'
2016-09-28 23:20:47.39 Server      CLR version v4.0.30319 loaded.
2016-09-28 23:20:47.78 Server      Common language runtime (CLR) functionality initialized using CLR version v4.0.30319 from C:\Windows\Microsoft.NET\Framework64\v4.0.30319\.
2016-09-28 23:20:47.87 spid8s      Starting up database 'master'.
2016-09-28 23:20:47.88 spid8s      There have been 256 misaligned log IOs which required falling back to synchronous IO.  The current IO is on file I:\SQLData\MSSQL12.SQLINST01\MSSQL\DATA\master.mdf.
2016-09-28 23:20:47.89 spid8s      Unable to create stack dump file due to stack shortage (ex_terminator - Last chance exception handling)
2016-09-28 23:20:47.89 spid8s      Stack Signature for the dump is 0x0000000000000000
2016-09-28 23:20:47.93 spid8s      [INFO]          Identity             Begin               End |        State                  Result     Error  Speculate   Prepared LazyCommit   ReadOnly |      Transaction         Database          ThreadId |   ReadSet  WriteSet   ScanSet Savepoint LogSizeRq | CommitDep TotalComm       Dependent 0       Dependent 1       Dependent 2       Dependent 3       Dependent 4       Dependent 5       Dependent 6       Dependent 7 |            Area  Location |
2016-09-28 23:20:49.37 spid8s      External dump process return code 0x20000001.
External dump process returned no errors.

Thanks a lot!

David