[sql] Wait on the Database Engine recovery handle failed. Check the SQL server error log for potential causes

In my case, setting SQL Server Database Engine service startup account to NT AUTHORITY\NETWORK SERVICE failed, but setting it to NT Authority\System allowed me to succesfully install my SQL Server 2016 STD instance.

Just check the following snapshot.

enter image description here

For further details, check @Shanky's answer at https://dba.stackexchange.com/a/71798/66179

Remember: you can avoid server rebooting using setup's SkipRules switch:

setup.exe /ACTION=INSTALL /SkipRules=RebootRequiredCheck

setup.exe /ACTION=UNINSTALL /SkipRules=RebootRequiredCheck

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