So do you have /QB! on your distribution package command line Install/Unistall options? If so I would remove it since the delivery methods control msi UI.
did you test the commandline manually?
Did you test it as local system?
Did you test it without logging and this parameter: /qn
Which application do you want to install?
It works if I remove all the parameters from the command line: box
Just tested it with a TRANSFORMS and all seems OK