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https://help.tallysolutions.com/docs/te9rel66/faqs/8965.html

Do not run installer from the target installation path unless doing an upgradation

Cause

While installing Tally.ERP 9 Series A Release 5.x, this message is displayed. The Setup.exe is used to upgrade to latest release from current release. It is also possible that users may accidently install lower release on higher release using Setup.exe which was downloaded from the web earlier.

If setup.exe is available in a folder and the user tries to install Tally to the same folder, then this error message is displayed.

This setup.exe is to be used to upgrade to latest release from current release. It is also possible that, users may accidently install lower release on higher release using setup.exe which was downloaded from Web earlier. To avoid this instance it is advisable to install Tally in a new folder or upgrade to latest release using Setup.exe which is available in Tally.ERP 9 folder.

Solution

Install Tally.ERP 9 release 5.x in a different folder (Where setup.exe is not available).