Matlab standalone executable with runtime in package not running while web installer is running

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Hello,
I am packaging a software for a computer without internet connection via the deploytool.
The software when tested after packaging on the same computer has following behaviour.
1) When packaged as a web installer ( 322MB), the software installs without any error.
2) When packaged with runtime in the package (1.7 GB), the installer is unable to start with the following message "The app can't run on your PC. Please check with software publisher"
As I need the software for offline PC, I need to go with option 2.
I am using same version of MCR installer R2018b 9.5 on a 64 bit machine.

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