"Installation directory must be on a local drive" msi install error

Some of our users in our organization has started to report a strange error when installing our product (product details redacted from the screenshot):

The original error message in english is "Installation directory must be on a local drive".

Changing the path to something without spaces, alteate root folders or even other physical drives on the machine changes nothing. The installer still insists that the path isn't a local path.

The problem only occurs on some computers, and it appears that none have the issue in Windows 10.