Hi,
I try to install express ed 2012, 2014SP3 and 2016 with the same problem:
Wait on the Database Engine recovery handle failed. Check the SQL Server error log for potential causes.
Deinstall each server and install its again generate the same error. In log:
Script level upgrade for database 'master' failed because upgrade step 'msdb110_upgrade.sql' encountered error 200, state 7, severity 25.
and:
Cannot recover the master database. SQL Server is unable to run. Restore master from a full backup, repair it, or rebuild it. For more information about how to rebuild the master database, see SQL Server Books Online.
If I try to start SQL server, I get error code 3417. Servers are starting only with option /T902.