Symptoms

Installation failed - kspx packages timed out
Customer ran into difficulties when installing K2 blackpearl v4.7.
When deploying installation KSPX packages (all of them) a time out was reached.
 

Diagnoses

Our first thought was permissions to the k2service account.
We gave (all users) full permission to the Sourcecode and K2 folder in program data folder.
This did not resolve the issue when we tried to run a repair packages still timed out.
(got stuck in state on Done! Done! when looking at the status of the repair)

We then proceeded to deployed the packages successfully with the Package and Deploy tool.
(Packages can be found in C:Program Files (x86)K2 blackpearlSetup)

However the health issue remains when we ran the Blackpearl Analysis again.
(pointing us to permission again)
 

Resolution

We ran the setup repair with the K2 Administrator account as a test to see if this was still perhaps a permission issue.
This successfully resolved the issue and there were no errors when running the Analysis again.

Made the recommendation that the administrators of the environment verify that the K2service account has all the correct permissions.