We saw the following error.
Database integration strategy failed due to an error: Invalid object name 'dbo.sysdatabases'.
System.Exception: Database Configuration could not be installed correct. Installation cannot be continued
The resolution of this was to open SQL Manager, and then follow the steps below:
1. Click Security >Logins
2. Right Click on the Account the is performing the install
3. Make sure it's default Database is set to Master.
4. Click OK
You now should be able to run the installer successfully.