Fix ERROR_INSTALL_PACKAGE_REJECTED (0x00000659) – Policy Blocked

Yeah, that error is a kick in the teeth. You're trying to install something, and Windows just slams the door with 0x00000659 – This installation is forbidden by system policy. Usually happens on a company laptop or a used PC someone locked down tight. Don't waste time hunting for corrupt files — this is a group policy flag.

The Quick Fix – Turn the Windows Installer Policy Back On

Skip everything else. Open the Local Group Policy Editor. Press Win + R, type gpedit.msc, hit Enter. If you're on Windows Home edition, you'll need to enable gpedit manually or use the registry method below.

Computer Configuration > Administrative Templates > Windows Components > Windows Installer

Look for the setting "Turn off Windows Installer". Double-click it. Set it to "Not Configured" or "Disabled". Hit Apply, then OK. Now try your install again. 9 times out of 10, that's all it takes.

Had a client last month whose entire print queue died because of this — their IT guy had locked down all installs to stop users from adding random software. But then they couldn't update their label printer driver. Same fix.

Why This Happens

The error code maps directly to the DisableMSI registry value under HKLM\Software\Policies\Microsoft\Windows\Installer. When that value is set to 1 (or 2 for per-user only), Windows refuses all MSI installs. Admins do this to prevent unauthorized software, but it often breaks legitimate installs too. The group policy editor just gives you a GUI toggle.

If you don't have gpedit.msc (Windows Home), open Registry Editor (regedit), navigate to:

HKEY_LOCAL_MACHINE\SOFTWARE\Policies\Microsoft\Windows\Installer

Delete the DisableMSI value if it exists. Exit regedit, reboot, done.

Less Common Variations

Sometimes the policy is set at the domain level via Active Directory. If you're on a company machine, your IT department pushed it down. In that case, group policy changes will get overwritten on reboot. You have two options:

Ask IT to whitelist the app you're installing.
Install from an elevated command prompt — try msiexec /i "path\to\installer.msi" as administrator. Occasionally bypasses a misconfigured policy.

Another variation: the error shows up when trying to install Windows Store apps. That's a different beast — go to Computer Configuration > Administrative Templates > Windows Components > Store and check "Turn off the Store application". Set it to Disabled.

One more: on Windows Server 2019, I've seen this error triggered by the "Always install with elevated privileges" policy being misconfigured. Check that setting too — if it's enabled but not applied correctly, it can block everything. Set it to Not Configured.

Prevention – Keep the Door Open

If you're an admin, don't lock down DisableMSI unless you really need to. Use AppLocker or Windows Defender Application Control instead — they block specific executables but let MSI run. That way you don't break every software update that comes along.

"I spent three hours troubleshooting a driver install that kept failing with this code. Was just a leftover group policy from a previous admin. Took 30 seconds to fix." – actual conversation last week

For home users: avoid running random scripts that tweak group policies. You'd be surprised how many "debloaters" or "optimizer" tools turn off Windows Installer without telling you. Stick to official installers and you won't see this error again.

Bottom line: check group policy first, registry second, and call IT if it's a domain machine. This error is almost never about a broken installer — it's about a policy that's too tight.