From the look of it, it’s “Bundle condition evaluated to false: NOT AxCryptLegacyInstalled” causing the problem. This in turn is probably the result of an attempted manual removal of the version 1.x of AxCrypt.
The check looks for the existence of the following registry entry: HKLM\SOFTWARE\Axon Data\AxCrypt REG_SZ Install_Dir . If you delete that, you’ll pass that test in the new installer.
However, you really should ensure that you uninstall version 1.x using the provided uninstaller… You might want to download the lastest 1.7 build, install and uninstall just to make sure that it’s done right.