Why does my Task Sequence using the “Install applications according to dynamic variable list setting” fail?

I’ve created a Task Sequence on my ConfigMgr 2012 Service Pack 1 (SP1) Primary Site that uses the Install Application Task Sequence step to install two Applications using the Install applications according to dynamic variable list setting.

I’ve created a Deployment for the Task Sequence but when I try to deploy it to the relevant Collection it fails.

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