This error is caused by running Installer.exe from within the MATLAB installation directory. Installer.exe creates the file mwinstaller.dll in $MATLAB\bin\win32\ (where $MATLAB is the MATLAB installation directory). When this file is present, the MATLAB installation is not prevented as you should not install MATLAB into the directory where the installation files are located.
If you are running installer.exe from the root MATLAB directory, move the Installer.exe and all the .zip files into a different directory and empty your MATLAB destination folder before running the installer again.
If you are not running installer.exe from the root MATLAB directory, delete the $MATLAB\bin\win32\mwinstaller.dll file before running the installer again.
Best Answer