MSI Install fails to get IIS_IUSRS group

MSI installer is getting failed to get group 'IIS_IUSRS' this is the error log:

MSI (s) (BC:14) [14:52:22:719]: Hello, I'm your 32bit Elevated Non-remapped custom action server. CreateUser: Error 0x80004005: Failed to get group 'ServerName/IIS_IUSRS'. CreateUser: Error 0x80004005: failed to add user: YYY to group IIS_IUSRS MSI (s) (BC!04) [14:52:22:875]: Product: XXX -- Error 26403. Failed to add user to group. (-2147467259 YYY IIS_IUSRS ) Error 26403. Failed to add user to group. (-2147467259 YYY IIS_IUSRS ) CustomAction CreateUser returned actual error code 1603 (note this may not be 100%

CreateUser is successful as it is returning 1.

MSI (s) (BC!CC) [14:52:22:344]: PROPERTY CHANGE: Adding CreateUser property. Its value is '**********'. Action start 14:52:21: ConfigureUsers. MSI (s) (BC!CC) [14:52:22:344]: Doing action: CreateUser Action start 14:52:22: CreateUser. Action ended 14:52:22: CreateUser. Return value 1.

How to resolve this issue?