Error installing vc90 runtime on Windows Sandbox

Question

When I try to install vc90 on Windows Sandbox I get the following error:

Product: Microsoft Visual C++ 2008 Redistributable - x64 9.0.30729.6161 -- Error 1935.An error occurred during the installation of assembly 'Microsoft.VC90.ATL,version="9.0.30729.6161",publicKeyToken="1fc8b3b9a1e18e3b",processorArchitecture="amd64",type="win32"'. Please refer to Help and Support for more information. HRESULT: 0x80070003. assembly interface: IAssemblyCache, function: CreateAssemblyCacheItem, component: {74C57B6B-FF6E-3825-BED2-78E14E3E0E3C}

Looking at the MSI log I get

MSI (s) (28:34) [03:49:51:396]: Executing op: SetTargetFolder(Folder=c:\Windows\winsxs\amd64_microsoft.vc90.atl_1fc8b3b9a1e18e3b_9.0.30729.6161_none_0a1fd3a3a768b895\)
MSI (s) (28:34) [03:49:51:396]: Executing op: SetSourceFolder(Folder=1\Windows\winsxs\ulATLx64\)
MSI (s) (28:34) [03:49:51:396]: Executing op: AssemblyCopy(SourceName=ax64.dll|atl90.dll,SourceCabKey=ul_atl90.dll.30729.6161.Microsoft_VC90_ATL_x64.QFE,DestName=atl90.dll,Attributes=0,FileSize=176456,PerTick=65536,,VerifyMedia=1,ElevateFlags=4,,,,ComponentId={74C57B6B-FF6E-3825-BED2-78E14E3E0E3C},,,,AssemblyMode=0,)
MSI (s) (28:34) [03:49:51:396]: Assembly Error:The system cannot find the path specified.

MSI (s) (28:34) [03:49:51:396]: Note: 1: 1935 2: {74C57B6B-FF6E-3825-BED2-78E14E3E0E3C} 3: 0x80070003 4: IAssemblyCache 5: CreateAssemblyCacheItem 6: Microsoft.VC90.ATL,version="9.0.30729.6161",publicKeyToken="1fc8b3b9a1e18e3b",processorArchitecture="amd64",type="win32" 
MSI (s) (28:34) [03:49:51:396]: Assembly Error (sxs): Please look into Component Based Servicing Log located at %windir%\logs\cbs\cbs.log to get more diagnostic information.

If I check the CBS log I get the following but it doesn't look like anything stands out.

2022-10-20 03:49:54, Info                  CBS    Failed to create CBS worker - waiting for a second and trying again [HRESULT = 0x80040154]
2022-10-20 03:49:55, Info                  CBS    Failed to create CBS worker - waiting for a second and trying again [HRESULT = 0x80040154]
2022-10-20 03:49:56, Info                  CBS    Failed to create CBS worker - waiting for a second and trying again [HRESULT = 0x80040154]
2022-10-20 03:49:57, Info                  CBS    Failed to create CBS worker - waiting for a second and trying again [HRESULT = 0x80040154]
2022-10-20 03:49:58, Info                  CBS    Failed to create CBS worker - waiting for a second and trying again [HRESULT = 0x80040154]
2022-10-20 03:49:59, Info                  CBS    Failed to create CBS worker - waiting for a second and trying again [HRESULT = 0x80040154]
2022-10-20 03:50:00, Info                  CBS    Failed to create CBS worker - waiting for a second and trying again [HRESULT = 0x80040154]
2022-10-20 03:50:01, Info                  CBS    Failed to create CBS worker - waiting for a second and trying again [HRESULT = 0x80040154]
2022-10-20 03:50:03, Info                  CBS    Failed to create CBS worker - waiting for a second and trying again [HRESULT = 0x80040154]
2022-10-20 03:50:04, Info                  CBS    Failed to create CBS worker - waiting for a second and trying again [HRESULT = 0x80040154]
2022-10-20 03:50:05, Info                  CBS    Failed to create CBS worker, crashed? [HRESULT = 0x80040154]
2022-10-20 03:50:05, Info                  CBS    Failed to get worker process. [HRESULT = 0x80040154]
2022-10-20 03:50:05, Info                  CBS    Failed to create worker SxS store. [HRESULT = 0x80040154]
2022-10-20 03:50:05, Info                  CBS    Failed to create worker SxS store [HRESULT = 0x80040154]

I thought it had something to do with permissions in the WinSXS folder but haven't been successful so far in figuring out the issue. The same applies if I try to install vc80 but interestingly enough it works fine in the newer vc runtimes (vc10, etc.).

Has anyone else encountered this issue or has any idea on possible next steps?