Microsoft has just updated KB 2837395:

“Install Application” task sequence fails with Error code 80004005 in System Center 2012 Configuration Manager SP1


Consider the following scenario:

  • You install a Microsoft System Center 2012 Configuration Manager Service Pack 1 (SP1) primary site server.
  • You use the Install Application task sequence step to install two applications by using the Install applications according to dynamic variable list setting.
  • You create a deployment for the sequence and then deploy the sequence to the target collection.

In this scenario, the task sequence fails. Additionally, the following error is logged in the Smsts.log file:

Error code: 0x80004005

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