Hi Michael,
Perform the following steps.
1) Set the profile parameter rdisp/login_no_sapstart =0 in the instance profile
2) Take SAP restart
3) Delete SAP* from client 000 using the sql command
delete from <schema>.usr02 where mandt='000' and bname='SAP*'.
4) Login with SAP* and password as pass
5) Reset the password of DDIC.
6) Login with DDIC user in client 000.
7) Retry the failed installation step. It should pass now.
Hope this helps.
Regards,
Deepak Kori