From looking at the SQL Server it was found that both the client ?K2UAT? database and a different ?K2? database was present. The ?K2? database was unused and contained no tables. After setting the ?K2? database to offline, the installation as performed again and completed successfully.
A bug item was logged for the Developers to investigate why the Installer was trying to connect to a default K2 database even though a different database was specified.