Verify that you have sufficient privileges to install system services
Sure, were your on tap knowledge... ...
How have you modified the MSI, did you do it via a TRANSFORM - let hope so.
Also (someone correct me if I am wrong) a service requires elevation to be added, specially applies to a SYSTEM service. And in response to your error, I have a suspicion you have modified the MSI in a manner that is not standard to MSI's.
I presume you have removed a (perhaps more than one) condition that prevented the installation starting if the logged on user did not have admin permissions. As I commented, you require admin permissions to create services via MSI (or for that matter anytime...).
I suggest you get the msi installation silent (using a transform) as Rileyz suggested and deploy via your EDS.