This happens when you try to install STDM Bundled Installer on Windows 7 without Service Pack 1. The installer suggests to upgrade to Service Pack 1.
To install STDM in compatibility mode, follow the steps below.
1. Right-click on the installer and click on Properties item in the Context menu (see the image below).
2. Click on Compatibility tab as shown in the image below.
3. Inside the Compatibility mode box, check on the checkbox, Run this program in compatibility mod for: and select Windows 7 as shown below.
4. Locate the buttons at the bottom. Click on the Apply button and then click on the OK button.
5. Double click on the STDM bundled Installer to start the installation. It should now start installing normally as discussed in the topic, Using Bundled STDM Installer.