I had this error, I looked into a log file C:\...\mysql\data\VM-IIS-Server.err and found this
2016-06-07 17:56:07 160c InnoDB: Error: unable to create temporary file; errno: 2
2016-06-07 17:56:07 3392 [ERROR] Plugin 'InnoDB' init function returned error.
2016-06-07 17:56:07 3392 [ERROR] Plugin 'InnoDB' registration as a STORAGE ENGINE failed.
2016-06-07 17:56:07 3392 [ERROR] Unknown/unsupported storage engine: InnoDB
2016-06-07 17:56:07 3392 [ERROR] Aborting
The first line says "unable to create temporary file", it sounds like "insufficient privileges", first I tried to give access to mysql folder for my current user - no effect, then after some wandering around I came up to control panel->Administration->Services->Right Clicked MysqlService->Properties->Log On, switched to "This account", entered my username/password, clicked OK, and it woked!