I encountered this error while installing the patch; the game itself installed normally (Windows 10). This method helped:

1. Install the game.
2. Run the patch and see the "catastrophic failure" error.
3. Delete the folder in the directory C:\Program Files (x86)\InstallShield Installation Information
*Keep in mind that this folder is hidden.
4. Run the patch again: you'll see a new error stating that the game is not installed.
5. Reinstall the game from the disc over the existing installation (in my case, the installer recognized the game and instead of "install," it showed "uninstall," so I had to open the disc as a folder and click "Setup." The installation was in the same location). If the installation is interrupted after unpacking, it means that InstallShield is stuck in the processes – stop it (in my case, this process was already running and had been stopped beforehand).
6. Run the patch for the third time – everything should install. If you get a catastrophic failure, go back to step 3.