D365: “Setup cannot continue because there is a pending restart required. Restart the computer and then try running Setup again” Error while installing Report Authoring Extension

While installing D365 Report Authoring Extension, we faced a weird error message and setup was not complete: “Setup cannot continue because there is a pending restart required. Restart the computer and then try running Setup again”.

Restarting the machine several times didn’t fix this issue.

Browsing the log file in the path mentioned in error pop up “C:\Users\<UserName>\AppData\Roaming\Microsoft\MSCRM\Logs”, we found that there was an entry which was saying “HKCU\Software\Microsoft\Windows\CurrentVersion\RunOnce contains Application Restart #2” as shown:

To fix this issue, we opened regedit.exe and traversed through the path :
“HKCU\Software\Microsoft\Windows\CurrentVersion\RunOnce” and found Application Restart #2 key value pair as shown:

Deleting the key value pair Application Restart #2, we tried running the setup file for Report Authoring Extension and this time it got installed successfully.

Hope it helps !!