I'm not sure of the reproducibility of the original CR.
I found a way to reproduce the reported error.
I used 6u10 and 6u11 builds that might have had regutil.dll's with different exported entry points. A number of originally 6u11 changes were putback in 6u10 before it released, so it might not be reproducible with 6u10 GA and 6u11 GA.
Component: jr; Installed: Absent; Request: Local; Action: Null
says the jr component was requested to be installed (locally), but the install isn't going to do it (Action: Null)
I would want to see Component: jr; Installed: Absent; Request: Local; Action: Local
where the component would overwrite the regutils.dll that was there.
I thought you changed to Action: Local by setting the right MSI / component properties, not by updating the internals during InstallValidate.
Instead of the component property Never Overwrite=No, it is almost like need an Always Overwrite (even with older version)
By setting the InstallMode of regutils.dll in the RemoveFiles table from 2 to 3, I was trying to get a 6u10 install to overwrite a 6u11 regutils.dll.