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SYSTEM and Administrators having Full Control would be the Microsoft default, so someone has deliberately restricted permissions on that server. I guess you need to find out who imposed the restriction and why.
It does look like you will need to add the permissions to be able to get a successful RSCD Agent install, even if it is just for the duration of the install itself, and as so much of the usual RSCD Agent work is via being mapped to Administrators, if there has been a hardening to restrict what Administrators can do, you may well encounter other unexpected and unpredictable problems..
Thanks Jim. This is a test server in my local VM environment, so I'm not sure how that Installer key had the permissions changed. I found similar problems with registry keys but no good solution. So I pushed permissions from the parent key HKEY_CLASSES_ROOT to all the subkeys and that allowed me to install the agent.