I recall similar thread not necessarily about Loopmasters but the Command Center and installers. A quick search on Google was no help though.
This path "C:\Users\Colin\Documents\Loops\Loopmasters" seems strange to me but others have reported content in their user directory too. I am not sure how it gets there.
On my PC Loopmasters is in "C:\Cakewalk Content\Audio Library\Loops\Loopmasters"
I was under the impression this stuff was installed in the "Cakewalk Content" folder. At least, that is where it has always been on my system. The Cakewalk Content folder is set in ContentDir in
HKEY_LOCAL_MACHINE\SOFTWARE\Cakewalk Music Software and ultimately this value is used to set "Audio Library" in
HKEY_LOCAL_MACHINE\SOFTWARE\Cakewalk Music Software\SONAR\Platinum\ContentLocations I wonder if the error is thrown after the installer has trouble resolving the registry entries, then tries and fails some hard coded default.