Recently we met an issue when installing SCOM 2016 Agent on Windows Server 2012 R2.
Symptoms:
Firstly the installation failed and we received below error:
"Error 1923 Service '@C:\\Windows\system32\AdtAgent.exe,-500' (AdtAgent) could not be installed. Verify that you have sufficient privileges to install system services."

If we cancel this, we will get another error:
"Error 25211.Failed to install performance counters..
Error Code: -2147024809 (The parameter is incorrect.)."

We could see below error messages in installation log.
MSI (s) (58:40) [14:32:30:484]: Executing op: ServiceInstall(Name=AdtAgent,DisplayName=@C:\Windows\system32\AdtAgent.exe,-500,ImagePath=C:\Windows\system32\AdtAgent.exe,ServiceType=16,StartType=4,ErrorControl=1,,Dependencies=eventlog[~]dnscache[~][~][~],,StartName=NT
AUTHORITY\NetworkService,Password=**********,Description=@C:\Windows\system32\AdtAgent.exe,-501,,)
Information 1923.Service '@C:\Program Files\Microsoft Monitoring Agent\Agent\HealthService.dll,-10500' (HealthService) could not be installed.
Verify that you have sufficient privileges to install system services.
MSI (s) (58:40) [14:42:11:863]: Product: Microsoft Monitoring Agent -- Error 1923.Service '@C:\Windows\system32\AdtAgent.exe,-500' (AdtAgent) could not be installed. Verify that you have sufficient privileges to install system services.
MSI (s) (C0!AC) [23:16:08:712]: Creating MSIHANDLE (311) of type 790531 for thread 1452
Information 2835.The control ErrorIcon was not found on dialog SetupError
Error 25211.Failed to install performance counters.. Error Code: -2147024809 (The parameter is incorrect.).
MSI (s) (C0!AC) [23:17:55:201]: Product: Microsoft Monitoring Agent -- Error 25211.Failed to install performance counters.. Error Code: -2147024809 (The parameter is incorrect.).
We've performed a lot of troubleshooting including permissions, RPC, Antivirus, rebuilding performance counters, etc. But those are not the real cause. Actually the symptom which leads us to the final resolution is the below picture. It seems there is some
issue with Services. We can see the error message "Failed to Read Description. Error Code 2" in the Description column.

Finally the issue was resolved with below steps. Kudos to Aravinda Kumar Jagu for the great contribution!
Resolution:
1. Press Windows Key + R combination, type put
Regedt32.exe in Run dialog box and hit Enter to open the Registry Editor.
2. Navigate to the following location:
HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Control\MUI

3. Now right click on the MUI key and select New
-> Key. Name the newly created key as StringCacheSettings.
In the right pane of this newly created key, create a new DWORD
value, name it as StringCacheGeneration. Double click this newly created
DWORD to modify its Value data.
4. In the above shown box, type the Value data as 38b. Make sure you have selected
Hexadecimal base here. Click OK. You may now close the Registry Editor and reboot to get fixed up.
5. After applying the fix Services are good in shape. Then we tried installing SCOM Agent which worked and installed successfully.

Hope it helps!