Hi,
I tested the scenario and indeed it failed when I chose some folder permissions for a custom user or for the "Administrator" user. But when I chose the "Administrators" user group (like in the image bellow) it worked well to me.

- Folder permissions.png (36.98 KiB) Viewed 5529 times
As my colleague Bogdan said in the
Error Applying security settings on French installation thread, the "Everyone" and "Administrators" user groups should work for all languages, but all other account names should be localized.
Let us know if you have any other question.
Best Regards,
Eusebiu