I installed BOINC in Windows with the "Protected Application Execution" option. Could this be a problem?
If you have installed BOINC with the Protected Application Execution option enabled, then you will not be able to run the project, and all the work units will fail. The reason is that when you install BOINC with that flag enabled, BOINC is run under an unprivileged user that cannot create, start, pause, resume virtual machines at all. Thus, the wrapper will not be able to run the required virtual machine of this project.
In order to solve it, please, reinstall BOINC with that option disabled.