I do not believe you should be installing Xtraction on the same server as your service Desk installation.
Technically they are different products, while they integrate, they don't play nice on the same server, might be related to IIS.
psythian is correct. Xtraction cannot be installed on the same server as Management Suite or Service Desk. Please attempt to install Xtraction on a different server and let us know if you run into any issues.
I'm guessing that is because the 2016.4 Xtraction install also contains a Workspaces install.
The Installation Requirements should be updated to mention this.
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Please find the below link.
The recommendation is to install the Xtraction on separate server.