[Bug 50438] New: Wine 3.12 32 bit and greater cannot install dotnet 3.5, fails with "Error 25541 Failed to open XML file C:\windows\Microsoft.NET\Framework\v2.0.50727\CONFIG\web_mediumtrust config. system error: -2147024786"

[WineHQ Bugzilla]

https://bugs.winehq.org/show_bug.cgi?id=50438

Bug ID: 50438
           Summary: Wine 3.12 32 bit and greater cannot install dotnet
                    3.5, fails with "Error 25541 Failed to open XML file
                    C:\windows\Microsoft.NET\Framework\v2.0.50727\CONFIG\w
                    eb_mediumtrust config. system error: -2147024786"
           Product: Wine
           Version: 3.12
          Hardware: x86
                OS: Linux
            Status: UNCONFIRMED
          Severity: critical
          Priority: P2
         Component: -unknown
          Assignee: [e-mail]
          Reporter: [e-mail]
      Distribution: ---

Created attachment 69049
  --> https://bugs.winehq.org/attachment.cgi?id=69049
Dot net 3.5 installation failure.

Cannot install dotnet 3.5 or 3.5 sp1 on wine 3.12 32 bit or greater with
winetricks, even up to the latest version of 5.x.

Works on wine 3.11 and earlier.

The error is:
"Error 25541 Failed to open XML file
C:\windows\Microsoft.NET\Framework\v2.0.50727\CONFIG\web_mediumtrust config.
system error: -2147024786"

Previous versions of dotnet install successfully, it only begins to fail on 3.5
and 3.5 sp1.

Ubuntu 20.04.1 LTS

Screenshot attached, please try it yourself and you will see it fails.

I have tried with and without msxml3 installed, same error both times. I tried
several versions going all the way back to 3.12. From 3.11 and prior, the
installation succeeds, so this appears to be a regression.

The file referenced in the error message does not exist.

This is preventing LA Noire from starting, and most likely anything that
depends on dot net 3.5.