You're heading into format D land soon, I think. But here are some things that I thought about:

Is the path where your Sage is installed particularly long so that the full path including that file is more than 260 characters?

Is there a log file of the installation process that you can look at?  (This might need tech support to chime in.)

You did a full un-install I see.  There's no need to install PU1 and then PU2 - if you try a re-install (and I would install to a different folder structure), just do the main install and then PU2.

What version of Windows are you installing on?  32 or 64 bit?

How's the hard drive space on the D drive?

 Django,

Formating is the last place I wish to go...

The path is OK, 2022 PU1 was running quite OK from it

Windows 10 64Bit 
Drive D has 559GB Free so not a space issue I think.

Were you running web screens on it before?

Were you running web screens on it before?

Web Screens were occasionally used, but not on consistent basis

Maybe try stopping IIS before the installation?

I'm curious to know what renaming the file will do as well.

Renaming what file?

Stopping IIS did not help.

Went on to do clean uninstall, restart, new installation on new drive and restart, then start to PU2 and same issue.

So I think I will pass on PU2.

I was referring to renaming the file that the process was held up on from your screenshot.

I'll clone my 2022 PU 1 virtual and try installing PU 2 later today and see if I have the same issue.

Django,

The only issue would be that it did not always stop on the same file...

Ah - okay - I missed that part.

Update:

I have narrowed down the issue to be specific with Web Screens.

Did a uninstall/reinstall without web screens and went direct to PU2 and that was installed without any issues.. so it is definitely a web screens issue.