Unable to deploy Adobe Flash Player using GPO

I was trying to deploy Adobe Flash Player 11 using Group Policy Object Software installation feature. The msi package of Adobe Flash Player was assigned to computer part of the GPO. GPO was applying successfully and Adobe Flash Player was installing successfully on start up on most of the computers that were in the scope for the GPO to be applied. On some workstations, GPO was failing to apply with following events in Application Log :

Log Name:      Application
Source:        MsiInstaller
Event ID:      10005
Task Category: None
Level:         Error
Keywords:      Classic
User:          SYSTEM
Description:
....
Product: Adobe Flash Player 10 ActiveX -- Error 2753.The File 'InstallAX.exe' is not marked for installation.

And in System Event Log couple of messages from Source Application Management Group Policy with Event ID 108,303,102, followed by:

Log Name:      System
Source:        Microsoft-Windows-GroupPolicy
Event ID:      1085
Task Category: None
Level:         Warning
Keywords:     
User:          SYSTEM
Description:
....
Fatal error during installation.

I tried to execute the msi package with administrative account and the setup was failing with following error message:

From control panel, Programs and Features there were now signs for any Adobe Flash Player Installation. But, in registry HKEY_Classes_Root\Installer\Products\ there was info for some Adobe Flash Player 10 ActiveX component:

 

After deleting the key from registry, Adobe Flash Player has installed successfully.