Brian / Rafeeq;
Yes the system is fully patched. I also tried installing the recommended KB 3000988, with the same result. I also tried installing the previously installed SEP version (12.1.4100.4126) which also yielded the same error - not surpisingly, I suppose, given what appears to a Microsoft installer break. I then tried one more uninstall of KB2918614 followed by another SEP install attempt - still, same result.
So, I then tried the registry whitelist edit referenced by Rafeeq. Finally, that allowed the installation to succeed! So, at least in my experience, the only way to overcome the Error 997 - Overlapped I/O issue was to perform the registry edit.
For what it's worth, the instructions at the link above seem to assume that the last key 'Installer' in the reference below already exists. In my case, that had to be created as well.
HKEY_LOCAL_MACHINE\SOFTWARE\Policies\Microsoft\Windows\Installer
Thank you for your assistance with this issue. Hopefully someone else will find it useful.