“Failed to parse command line arguments, hr=0x80070057” for Task Sequence migrated from ConfigMgr 2007 that use Virtual Applications

I have migrated a Task Sequence from ConfigMgr 2007 that uses Virtual Applications for Install Software package source but these fail to run.

If I look in the Smsts.log on the Client I see the following:

Executing command line: smsappinstall.exe /app:ScopeId_{GUID}/Application_{GUID} /basevar: /continueOnError:
[ smsinstallapp.exe ]
ContinueOnError flag is null
Failed to parse command line arguments, hr=0x80070057
Process completed with exit code 2147942487

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