SEp 12 install gives error on reparse point

I'm attempting to install SEP 12 on a Windows 7 on VM. I have SEP 11 installed on it. I had uninstalled it and now am trying to install SEP 12. I get an error stating that it is unable to install on a reparse point. I'm aware that SEP is not compatiable with reparse point install, but this is not a reparse disk. SEP 11 was installed without any trouble.

My Documents settings is in E drive, where as my windows is in C drive. I have attached the install log.

Any help would be greatly appreciated.