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I had the same problem on a machine where I had previously upgraded from 8.5 to 8.7. When I reviewed the registry at HKLM\Software\McAfee\DesktopProtection\szProductVer, I found the value was 188.8.131.521 even though the product itself reports 8.7.0. When I killed the services and edited that key to the proper value, the Install Builder was more than happy. I'm not sure of the potential future problems with this approach but it fixed my immediate problem. I have confirmed on a number of machines that this problem persists. BTW, the registry also lists Patch5 even though the machines all have Patch7. I removed this value as well.
Thank you! I had the exact same version number in the registry. Cleaned it up and all is well. At least for now. Like you I hope there's no long term effect.
Thank you for your help!