BUG #14951: Install Error on Windows server 2008 R2

The following bug has been logged on the website:

Bug reference: 14951
Logged by: Radu Dragusi
Email address: radudragusi(at)gmail(dot)com
PostgreSQL version: 10.1
Operating system: Windows server 2008 R2
Description:

Log started 12/06/2017 at 17:49:22
Preferred installation mode : win32
Trying to init installer in mode win32
Mode win32 successfully initialized
[17:49:25] Initializing PostgreSQL installer
[17:49:25] Windows Version is: Windows 2008 R2 (6.1)
[17:49:25] Operating System Language is: en
[17:49:25] Current build_identifier is: 10.1-1
[17:49:25] System PATH:
C:\Program Files (x86)\Google\Chrome
Beta\Application;C:\ProgramData\Oracle\Java\javapath;C:\Windows\system32;C:\Windows;C:\Windows\System32\Wbem;C:\Windows\System32\WindowsPowerShell\v1.0\
[17:49:25] Initializing pg10 variables
[17:49:25] Download url: https://s3.amazonaws.com/pgcentral
[17:49:25] PostgreSQL Locale to install: DEFAULT
Setting variable windows_net_session_exitcode from
C:\Users\postgres\AppData\Local\Temp\3\postgresql_postgres/net-session-exit-code.bat

Script exit code: 0

Script output:
0

Script stderr:

[17:49:27] Exit code of "net session" is: 0.
[17:49:27] Orphaned PostgreSQL servicename found. Cleaning up now
[17:49:27] Executing pg10 Pre-install actions
[17:49:30] Validating installdir: C:\PostgreSQL
[17:49:31] Setting pg dir: C:\PostgreSQL\pg10
Setting variable check_pgc-path from
C:\Users\postgres\AppData\Local\Temp\3\postgresql_postgres/check-path.bat
"C:\PostgreSQL"
Script exit code: 0

Script output:
OK

Script stderr:

[17:49:51] Testing selected data dir: C:\PostgreSQL\data\pg10
[17:49:51] Using pg free port = 5432
[17:49:52] Network connection NOT required
Preparing to Install
Windows security permissions
[17:49:53] Granting permissions to directories
Granting permission to NetworkService for C:\PostgreSQL
Granting permission to Everyone on Logs
Preparing to Install
[17:49:53] Executing postgresql ready to install actions
Check for existing Windows service
Check for existing installation: C:\PostgreSQL
[17:49:53] Checking for PostgreSQL installation in existing directory
C:\PostgreSQL
Unpacking files
Unpacking files
[17:51:37] Executing pg10 Post-install actions
PGC info
Run PGC info so that pgc install information is saved to installer log
file
Executing C:\PostgreSQL/pgc info
Script exit code: 1

Script output:

Script stderr:
Traceback (most recent call last):
File "hub\scripts\pgc.py", line 19, in <module>
import socket
File "C:\POSTGR~1\python2\lib\socket.py", line 47, in <module>
import _socket
ImportError: DLL load failed: The application has failed to start because
its side-by-side configuration is incorrect. Please see the application
event log or use the command-line sxstrace.exe tool for more detail.

Error with configuration or permissions. Please see log file for more
information.
Problem running post-install step. Installation may not complete correctly
Error with configuration or permissions. Please see log file for more
information.
Cleanup
Deleting temp dir:
C:\Users\postgres\AppData\Local\Temp\3\postgresql_postgres
Creating Uninstaller
Creating uninstaller 25%
Creating uninstaller 50%
Creating uninstaller 75%
Creating uninstaller 100%
Uninstaller icon changed
Installation completed
Signed uninstaller
Log finished 12/06/2017 at 17:59:39