DB2 installation on Windows requires Microsoft 8.3 filename convention

Answer

Starting with Microsoft Windows Server 2012 R2, the 8dot3 filename support is disabled by default on non-system drives (e.g. D:\)
Starting with WinPE 4.0 (Windows Preinstallation Environment), the 8dot3 filename support is disabled for all volumes including the system drive.
Any Windows images created using WinPE 4.0 or later will have 8dot3 filename support disabled.
In order to avoid installation failure, the following workarounds can be applied:

1) Install the Tivoli Storage Manager to a non-default location that does not contain a space in the installation path.

DB2 will be installed to a subdirectory of that path and will not contain a space.

2) Re-enable 8dot3 filename support manually before installing the Tivoli Storage Manager to the default path and recreate the short name to the C:\Program Files path.

3) For Windows images created using WinPE 4.0 or later, update the Windows installation images to enable 8dot3 support.

See the article below for more details. The key sequence here is that when creating the images add a command in the sequence to format the drive with "/s:enable" to enable short names.