Maybe it will sound “offensive”, but one of my VFW mates had the same problem and the solution was… waiting for the setup to start. 😕
It took nearly 15 minutes in his case, but then it went smooth and with no further hassle.
Try this, meanwhile please notice that GOG and Steam have the Falcon Collection at around $9: I know you’ll ask yourself “why have I got to buy it if I already legitimately own it?”, my humble answer is that it’s worth to simplify one’s life as much as possible. 😉