The cause of the problem is that MSIGetLogFileName is no longer exported by RegUtils.dll.
Previously (e.g. 6u4), LOGFILE was not being set by MSIGetLogFileName() because a deferred custom action cannot set an MSI property.
The custom actions have been resolving to
"[bin]\unpack200.exe" -r -v -l "" "[INSTALLDIR]\jre\lib\jsse.pack" "[INSTALLDIR]\jre\lib\jsse.jar"
with the log output being lost. This change does not changed the output being lost. CR 6657295 will have to.
My change is to get rid of the getlogfile custom action from the JDK install and the call to the non-existing, previously non-functioning, MSIGetLogFileName, which cause the Error 1723.
CR 6647280 removed MSIGetLogFileName from RegUtils.dll because the deferred custom action cannot set an MSI property such as LOGFILE.
CR 6657295 exists to fix logging of zipper.exe and unpack200.exe in the JDK install.