I have had difficulty in the past getting the xdsagent.exe Agent file to install on Windows 7. In looking around, I found a trick to resolving the problem that involves copying xdsagent.exe to a location on the virtual machine, opening an elevated CMD Prompt to that location, and then running the command msiexec /I XdsAgent.msi INSTALLONWDDM=1. This has worked for me when I've run into this issue. Hope it helps you as well!
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