I would verify nvpcpl.dll is present on your system. It is what controls the unwanted program policies dialog.
It should always be present though, even if not installed as a feature.
Otherwise, something sounds off with the VSE installation.
Precautionary thing to do also, build MID packages anew rather than customizing something you had already customized.
Have checked and nvpcpl.dll is installed on my laptop as part of my VirusScan install. I did download the latest 8.7i from McAfee and try using that but the same issue. I will use a seperate spare laptop which has been completely re-built and try on that and see what happens.