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PrepareSchema failes on DidOnPremisesSettingCreatedAnException

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We are running Exchange 2007 (sp3 rollup 10) in a single domain. We had a Exchange 2010 hybrid server last year when we evaluated Office 365. That server is uninstalled.

I now want to install Exchange 2013 cu1 on a new server (Windows 2012). The setup fails on Setup.exe /PrepareSchema /IAcceptExchangeServerLicenseTerms. I also tried running this on DC-5 server with same result.

The log file is too big to post but can be found here:

http://pastebin.com/cKczenyZ



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