Looks like I've found a solution.
If an iTunes installation fails with the message "Error applying transforms. Verify that the specified transform paths are valid." this likely indicates that your language and regional preferences are not supported by the iTunes installer. Changing to a supported language should allow the installation to complete. Supported languages are: Catalan, Chinese, Croatian, Czech, Danish, Dutch, English, Finnish, French, German, Greek, Hebrew, Hungarian, Indonesian, Italian, Japanese, Korean, Malay, Norwegian, Polish, Portuguese, Romanian, Russian, Slovak, Spanish, Swedish, Thai, Turkish, Ukrainian, and Vietnamese.
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