The RS_Server_Adv is the Reporting Services component which I installed because it was a specific requirement for a project and one I rarely ever install. Since I suspected that the error was checking installed components first, I crawl the registry to find that there is indeed a registry key called RS_Server_Adv at HKLM\Software\Microsoft\Microsoft SQL Server\MSA=RS10_50.YOURINSTANCENAME with a value of 4. Since it is a brand new build on a virtual machine, I take a snapshot and start altering the value, starting with 0 which did not fix the issue. Rebooted and tried again, still no go. Back to the registry and changed the value to 1 than tried the installation and what do you know, the installation works!
the installation completes and I reboot and ran SQL to make sure everything was working after the value alteration and everything seems to be working just fine.
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