System.BadImageFormatException: Could not load file or assembly

It seems that you are using the 64-bit version of the tool to install a 32-bit/x86 architecture application. Look for the 32-bit version of the tool here:

C:\Windows\Microsoft.NET\Framework\v4.0.30319

and it should install your 32-bit application just fine.

Try to configure the setting of your projects, it is usually due to x86/x64 architecture problems:

Go and set your choice as shown: