Error while installing VSTO file - A device attached to the system is not functioning. (Exception from HRESULT: 0x8007001F)

When I try install our VSTO (outlook) file on machine 1 for user a, it works fine but for user b it gives below exception.

Log Name:      Application
Source:        VSTO 4.0
Date:          03/10/2016 12:50:59
Event ID:      4096
Task Category: None
Level:         Error
Keywords:      Classic
User:          N/A
Computer:      NAME_OF_COMPUTER
Description:
Customization URI: file:///C:/Program Files (x86)/MAIN_FOLDER/SUB_FOLDER/OUTLOOK PLUGIN.vsto
Exception: A device attached to the system is not functioning. (Exception from HRESULT: 0x8007001F)


************** Exception Text **************
System.Runtime.InteropServices.COMException (0x8007001F): A device attached to the system is not functioning. (Exception from HRESULT: 0x8007001F)
   at Microsoft.VisualStudio.Tools.Applications.Deployment.ClickOnceAddInDeploymentManager.DownloadAddIn(TimeSpan timeout)
   at Microsoft.VisualStudio.Tools.Applications.Deployment.ClickOnceAddInDeploymentManager.InstallAddIn()


************** Loaded Assemblies **************
mscorlib
    Assembly Version: 4.0.0.0
    Win32 Version: 4.0.30319.1026 (RTMGDR.030319-1000)
    CodeBase: file:///C:/Windows/Microsoft.NET/Framework/v4.0.30319/mscorlib.dll
----------------------------------------
Microsoft.VisualStudio.Tools.Office.Runtime
    Assembly Version: 10.0.0.0
    Win32 Version: 10.0.60724.0
    CodeBase: file:///C:/Windows/Microsoft.Net/assembly/GAC_MSIL/Microsoft.VisualStudio.Tools.Office.Runtime/v4.0_10.0.0.0__b03f5f7f11d50a3a/Microsoft.VisualStudio.Tools.Office.Runtime.dll
----------------------------------------
System.Core
    Assembly Version: 4.0.0.0
    Win32 Version: 4.0.30319.233 built by: RTMGDR
    CodeBase: file:///C:/Windows/Microsoft.Net/assembly/GAC_MSIL/System.Core/v4.0_4.0.0.0__b77a5c561934e089/System.Core.dll
----------------------------------------
System
    Assembly Version: 4.0.0.0
    Win32 Version: 4.0.30319.1026 built by: RTMGDR
    CodeBase: file:///C:/Windows/Microsoft.Net/assembly/GAC_MSIL/System/v4.0_4.0.0.0__b77a5c561934e089/System.dll
----------------------------------------
System.Windows.Forms
    Assembly Version: 4.0.0.0
    Win32 Version: 4.0.30319.1032 built by: RTMGDR
    CodeBase: file:///C:/Windows/Microsoft.Net/assembly/GAC_MSIL/System.Windows.Forms/v4.0_4.0.0.0__b77a5c561934e089/System.Windows.Forms.dll
----------------------------------------
System.Drawing
    Assembly Version: 4.0.0.0
    Win32 Version: 4.0.30319.1036 built by: RTMGDR
    CodeBase: file:///C:/Windows/Microsoft.Net/assembly/GAC_MSIL/System.Drawing/v4.0_4.0.0.0__b03f5f7f11d50a3a/System.Drawing.dll
----------------------------------------
Microsoft.VisualStudio.Tools.Applications.Hosting
    Assembly Version: 10.0.0.0
    Win32 Version: 10.0.60724.0
    CodeBase: file:///C:/Windows/Microsoft.Net/assembly/GAC_MSIL/Microsoft.VisualStudio.Tools.Applications.Hosting/v4.0_10.0.0.0__b03f5f7f11d50a3a/Microsoft.VisualStudio.Tools.Applications.Hosting.dll
----------------------------------------
Microsoft.VisualStudio.Tools.Applications.ServerDocument
    Assembly Version: 10.0.0.0
    Win32 Version: 10.0.60724.0
    CodeBase: file:///C:/Windows/Microsoft.Net/assembly/GAC_MSIL/Microsoft.VisualStudio.Tools.Applications.ServerDocument/v4.0_10.0.0.0__b03f5f7f11d50a3a/Microsoft.VisualStudio.Tools.Applications.ServerDocument.dll
----------------------------------------
System.Xml
    Assembly Version: 4.0.0.0
    Win32 Version: 4.0.30319.1026 built by: RTMGDR
    CodeBase: file:///C:/Windows/Microsoft.Net/assembly/GAC_MSIL/System.Xml/v4.0_4.0.0.0__b77a5c561934e089/System.Xml.dll
----------------------------------------
Microsoft.VisualStudio.Tools.Applications.Runtime
    Assembly Version: 10.0.0.0
    Win32 Version: 10.0.60724.0
    CodeBase: file:///C:/Windows/Microsoft.Net/assembly/GAC_MSIL/Microsoft.VisualStudio.Tools.Applications.Runtime/v4.0_10.0.0.0__b03f5f7f11d50a3a/Microsoft.VisualStudio.Tools.Applications.Runtime.dll
----------------------------------------
System.Deployment
    Assembly Version: 4.0.0.0
    Win32 Version: 4.0.30319.1039 (RTMGDR.030319-1000)
    CodeBase: file:///C:/Windows/Microsoft.Net/assembly/GAC_MSIL/System.Deployment/v4.0_4.0.0.0__b03f5f7f11d50a3a/System.Deployment.dll
----------------------------------------
System.Configuration
    Assembly Version: 4.0.0.0
    Win32 Version: 4.0.30319.1015 (RTMGDR.030319-1000)
    CodeBase: file:///C:/Windows/Microsoft.Net/assembly/GAC_MSIL/System.Configuration/v4.0_4.0.0.0__b03f5f7f11d50a3a/System.Configuration.dll
----------------------------------------
System.Security
    Assembly Version: 4.0.0.0
    Win32 Version: 4.0.30319.1031 (RTMGDR.030319-1000)
    CodeBase: file:///C:/Windows/Microsoft.Net/assembly/GAC_MSIL/System.Security/v4.0_4.0.0.0__b03f5f7f11d50a3a/System.Security.dll
----------------------------------------
System.Xml.Linq
    Assembly Version: 4.0.0.0
    Win32 Version: 4.0.30319.1 built by: RTMRel
    CodeBase: file:///C:/Windows/Microsoft.Net/assembly/GAC_MSIL/System.Xml.Linq/v4.0_4.0.0.0__b77a5c561934e089/System.Xml.Linq.dll
----------------------------------------



Event Xml:
<Event xmlns="http://schemas.microsoft.com/win/2004/08/events/event">
  <System>
    <Provider Name="VSTO 4.0" />
    <EventID Qualifiers="49154">4096</EventID>
    <Level>2</Level>
    <Task>0</Task>
    <Keywords>0x80000000000000</Keywords>
    <TimeCreated SystemTime="2016-10-03T11:50:59.000000000Z" />
    <EventRecordID>1179761</EventRecordID>
    <Channel>Application</Channel>
    <Computer>COMPUTER_NAME</Computer>
    <Security />
  </System>
  <EventData>
    <Data>Customization URI: file:///C:/Program Files (x86)/MAIN_FOLDER/SUB_FOLDER/OUTLOOK PLUGIN.vsto
Exception: A device attached to the system is not functioning. (Exception from HRESULT: 0x8007001F)


************** Exception Text **************
System.Runtime.InteropServices.COMException (0x8007001F): A device attached to the system is not functioning. (Exception from HRESULT: 0x8007001F)
   at Microsoft.VisualStudio.Tools.Applications.Deployment.ClickOnceAddInDeploymentManager.DownloadAddIn(TimeSpan timeout)
   at Microsoft.VisualStudio.Tools.Applications.Deployment.ClickOnceAddInDeploymentManager.InstallAddIn()

Any idea?

More information on query

Enviroment:- Remote desktop service server 2008 R2

Check if there are files that are read-only that block ClickOnce from installing. The error is often not related to a device, but simply caused by installer obstructions where files cannot be deleted/overwritten using the ClickOnce engine.

It might be needed to clear out a previous installation properly manually that is blocking the ClickOnce engine (maybe clear the ClickOnce cache also).