You mentioned that running the package locally works, but not when executed from a network share. But then you also mentioned that using Patch Management isn't working either though, which should be running the patch locally, so it's not clear with that regard.
When you say it runs fine if ran locally, do you mean if you go double click the file to run it vs use LDMS to run it? If you are manually running it by double clicking the file on the client to launch it, vs using LDMS, it is likely running as different user accounts. Manually running it (double click) will run as the logged on user, and distribution packages and patches install as local system. You can try setting an account to run as in the distribution package under 'Accounts' which would allow sdclient to run the package as a specific user.