To resolve this, I had to uninstall SEP from the client, run the clean-wipe utility because SEP would not completely uninstall. Deleted the entries from SEPM, and then re-installed the client.
Deleting the entries on SEPM doesn't work because the problem is the opstate on the client just updates SEPM with the failed state. I made attempts in the registry on the client to correct opstate, but was not successful.
Most noteworthy was when I uninstalled, the uninstall ran, the status on SEPM changed to "successfully uninstalled." however, the SEP remained on the client. Any other attempt to run uninstalled failed. So I had to use the Symantec clean-wipe utilty. Once the client was fully cleaned, I was able to push a new installation and it installed correctly. Status now "install successful."
What I believe facilitated the problem, is a co-worker had correctly installed SEP12.1 RU1 MP1, but then manually ran a packages install a second time. The status in the console had stated that the install was unsuccessful and that it was rolled back. I believe trying to install packaged install corrupted the registry and opstate.
This took no less than 4 reboots to clean up. If someone has a tried and true (tested) way to fix without uninstall, please post.