Verification:
  x32  7u10 nightly Nov 27 ( before b18 ) - FAIL  ( Note: not always reproducible with 7u10 b17 x86, so checked on nightly )
  x64 7u10 b17                                     - FAIL

  x32 7u10 b18 - PASS, no issues
  x64 7u10 b18 - PASS, no issues

                                     

I can see this issue for 7u10 b17 for x32 bit offline JRE bundle( no issue in b16 for x32 bit bundle ).
                                     

Per my investigation, my fix is not related with this bug. The root cause is because we added new arguments to msi installer.

In latest 7u10, we invoke msi with folowing command line: 
""C:\Windows\SysWOW64\\msiexec.exe"" /i ""C:\Users\uadmin.SC14160160\AppData\LocalLow\Sun\Java\jre1.7.0_10\jre1.7.0_10.msi""  WEB_JAVA=-1 WEB_JAVA_SECURITY_LEVEL=  SKIPLICENSE=1 PROG=0 ENDDIALOG=0"

But it was ""C:\Windows\SysWOW64\\msiexec.exe"" /i ""C:\Users\uadmin.SC14160160\AppData\LocalLow\Sun\Java\jre1.7.0_10\jre1.7.0_10.msi""   SKIPLICENSE=1 PROG=0 ENDDIALOG=0"

I tried with "SKIPLICENSE=1 PROG=0 ENDDIALOG=0  WEB_JAVA=-1 WEB_JAVA_SECURITY_LEVEL=  ". It seems work, at least, no license window. Investigating what is "WEB_JAVA=-1 WEB_JAVA_SECURITY_LEVEL=" and if it still works if moved to back of arguments.
                                     

After looked over again, it is the regression from Bill's change for adding additional argument. 

I will assign to Bill to let him decide. 
                                     

This bug is egregious enough to warrant a fix in 7u10. Requesting approval for b18.

The fix appears to be low-risk/low-impact.
                                     

I can reproduce it with x64 ( ! ) JRE offline bundle for 7u10 b16 build.
No such issue for x32 bundles.
Issue happens since 7u10 b14, no issues with 7u10 b13
 See first_screen.jpg and second_screen.jpg attached.
                                     

We need a decision on impact of this bug asap.
                                     

This is a serious usability issue, and the offline build is used quite frequently as a troubleshooting method so this behavior is confusing. From UE perspective this needs to be fixed.
                                     

Is this a regression for 7u10 ? If so, add regression label.
Jennifer, does this need to be fixed in 7u10 ? 
                                     

It was a pretty serious regression but I am unable to reproduce with the latest promoted build (Nov 14).  Could you please confirm that you can't reproduce it?
                                     

The problem is that the msi dialog suppressing arg does not work.

I think the problem is the new agrs passed to the msi that the second one does not have the proper value(WEB_JAVA_SECURITY_LEVEL=) which mess up the rest of the args
WEB_JAVA=-1 WEB_JAVA_SECURITY_LEVEL=