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The issue with the 3rd-party software has been documented in a technote, providing a solution and a workaround (SFA 1.4.0.5 or later).
JVM Security Error Encountered When Installing IBM Sterling Connect:Direct File Agent on Windows
Security Fix provided by the Vendor
If the Windows installer/uninstaller is launched as an administrator pointing to a JVM location which is an unsecure/non-admin user folder, then installer/uninstaller will exit. The JVMs in the non-admin user folders will not be permitted to be used and will be restricted with security error message.
How this applies to Standalone File Agent
When a user launches the Standalone File Agent Windows installer, it first extracts the bundled JVM into a temporary location beneath the user's %TMP% directory. Next, it launches the JVM from there to start the actual installation process. Typically, the temporary JVM location inherits permissions from its parent, like %TMP%.
The problem arises when the %TMP% directory has Write permission granted to the Users group, which it normally should not have, and which exposes a security risk. In this case, the Windows installer considers the JVM location to be unsecure for an administrator, shows the security error message and exits.
Solution
Remove Write access for the Users group from the %TMP% directory when running the installer as administrator.
Thank you for taking the time to share your ideas to IBM. We truly value our relationship with you and appreciate your efforts and willingness to share details about your experience, your recommendations, and ideas. We will soon review the same in the coming weeks and shall get back with a response.
Thanks,
James