Problems installing latest versions using TMS Smart Setup

There are normally 2 causes for that error:

  1. The Windows Path became too long and it is not finding the bpls
  2. $(PATH) is not in your environment variables path.

Both of those things should be possible to fix with tms doctor.
Can you open a cmd.exe, and type

cd /D C:\DC\TMS\TMS Setup
tms doctor -fix

and see if it fixes it?