I\'ve created a simple winforms app and a custom installer. It all seems simple enough but I get the following popup and error details in the event log.
I had the same issue. In my case this blog helped: https://timgolisch.wordpress.com/2016/06/05/error-1001-exception-occurred-while-initalizing-the-installation/
Just to sum it up: check if your Output project Target .NET Framework version is matching with the Installer project Launch Condition .NET Framework version.