Office365 does not install from a local or shared drive

I am completely unable to install office365 from a local copy of the cab files on a hard drive. Details: The Dec 17 update of office365 has crippled all customized back end Access applications (for any users). As a result I need to roll back office365 to an earlier build. I have downloaded the build  install files to d:\office365. Microsoft deployment manager is also downloaded and setup.exe is in the d:\office365 folder as well as the install XML files. When I use "setup.exe /configure InstallLocal.xml" from an elevated command prompt it fails each and every time with an error related to internet connectivity. All virus and firewalls turned off. Removed and scrubbed machine of all prior office installations. Tried two different workstations. Tried a local admin as well as enterprise admin account. Tried using a shared folder "\\LenovoX1\Office365" as well as "d:\office365" as the location for the office files. No luck on any of these fixes. Looked at permissions...nope.  Here is the XML:

<Configuration>
<Add OfficeClientEdition="32" Version="16.0.14701.20226" SourcePath="\\LenovoX1\Office365">
<Product ID="O365BusinessRetail" >
<Language ID="en-us" />
</Product>
</Add>
</Configuration>

Any help would be appreciated.