SQL Ser 2016 Setup - The service did not respond to the start or control request in a timely fashion.

Symptoms:
When installing SQL Server 2016 on a domain joined computer and you have selected the "R Services (In-Database)" option, during the setup you will receive the following error message:
"The service did not respond to the start or control request in a timely fashion."

Detailed symptoms:
As the error message is generic, to find more about the error open the setup logs under:
 C:\Program Files\Microsoft SQL Server\130\Setup Bootstrap\Log\

You have here multiple folders in the format <newest date>_<time> for each install/repair/uninstall event.

From the most recent folder open the Detail.txt file and scroll to the buttom:
 Slp: Sco: Attempting to start service MSSQLLaunchpad
Slp: Sco: Attempting to open SC Manager
Slp: Sco: Attempting to open service handle for service MSSQLLaunchpad
Slp: Sco: Attempting to close service handle for service MSSQLLaunchpad
Slp: Sco: Attempting to close SC Manager
Slp: Prompting user if they want to retry this action due to the following failure:
Slp: ----------------------------------------
Slp: The following is an exception stack listing the exceptions in outermost to innermost order
Slp: Inner exceptions are being indented
Slp:
Slp: Exception type: Microsoft.SqlServer.Configuration.Sco.ScoException
Slp:     Message:
Slp:         The service did not respond to the start or control request in a timely fashion.
Slp:       
Slp:     HResult : 0x84bb0001
Slp:         FacilityCode : 1211 (4bb)
Slp:         ErrorCode : 1 (0001)
Slp:     Data:
Slp:       DisableRetry = true
Slp:     Inner exception type: System.ComponentModel.Win32Exception
Slp:         Message:
Slp:                 The service did not respond to the start or control request in a timely fashion.
Slp:               
Slp:         HResult : 0x80004005
Slp:         Error : 1053
Slp:         Stack:
Slp:                 at Microsoft.SqlServer.Configuration.Sco.Service.StartService(String[] startParams)
Slp:                 at Microsoft.SqlServer.Configuration.Sco.Service.StartService(String startParameters)

We try to start the MSSQLLaunchpad  service but this still fails with the same error message. To find more information why the MSSQLLaunchpad does not start, we open the log of the service. This can be found under the folder C:\Program Files\Microsoft SQL Server\MSSQL13.MSSQLSERVER\MSSQL\LOG\ExtensibilityLog
We open the EXTLAUNCHERRORLOG file in notepad and see that we have a LogonUser Failed message.

<datetime>    User Config data file: C:\Program Files\Microsoft SQL Server\MSSQL13.MSSQLSERVER\MSSQL\Binn\SQLRConfigData
<datetime>    User Config key file: C:\Program Files\Microsoft SQL Server\MSSQL13.MSSQLSERVER\MSSQL\Binn\SQLRConfig
<datetime>    LogonUser Failed for user MSSQLSERVER01. ErrorCode: 0x8007052e.
<datetime>    InitializePhysicalUsersPool Failed. ErrorCode: 0x8007052e.
<datetime>    Security Context Manager initialization failed. ErrorCode: 0x8007052e.
<datetime>    Satellite Session Manager initialization failed. ErrorCode: 0x8007052e.
<datetime>    Initialization of satellite session manager failed. ErrorCode: 0x8007052e.

The setup creates multiple MSSQLSERVER** user accounts which are used by the SQL Server Launcher Service.

SOLUTION

1. Grant to the users MSSQLSERVER** "log on locally" user right. A step by step guide can be found under https://technet.microsoft.com/en-us/library/cc732593(v=ws.10).aspx 
2. If this is blocked by a domain policy, you can add all MSSQLSERVER** accounts to the local administrator group
3. Start the SQL Server Launchpad service
4. Click Retry on the setup and the setup will continue.

If you Click Cancel, the  setup will still successfully install all other components.