In most cases D drive will not have necessary permission.Right click on C drive and check what permission it has you can copy those to D as well. You can give System account Full access, no issues with that.
When you run the setup msiexec.exe will run with your account and the System account. You can verify this in the taskmanager Just make sure that they enough permisson. If permission is not inherited from root drive , check the option replace permission for this folder and all the sub folder . Support has a tool called Testsec when run it will give you the necessary permission and whats missing for the install.