https://bugs.winehq.org/show_bug.cgi?id=38884
--- Comment #2 from Austin English austinenglish@gmail.com --- (In reply to Rosanne DiMesio from comment #1)
Your Wine version is 4 years old and no longer supported. Upgrade to the latest development release
I don't know what "pywin32.msi" you're talking about; your backtrace shows that what you're trying to install is pywin32-218.win32-py2.7.exe, which installs fine here in 1.7.46. If it's something else you're trying to install, and it doesn't work in 1.7.46, please provide a legal download link.
Also note that you're running as root, which you shouldn't be doing.