SCCM setup fails “ERROR: Manifest verification failed. Wrong version of manifest?”

I am trying to run SCCM setup using the redistributable files in the CD.Latest folder I’ve created for SCCM 1606. However, the setup process is failing with a manifest verification error. If I look in the ConfigMgrSetup.log I see the following errors:

ERROR: File hash check failed for defaultcategories.dll
ERROR: Manifest verification failed. Wrong version of manifest?


This is a known issue for which there are currently two potential workarounds:

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