When you try to install App Controller to a Remote SQL server it fails, and if you look in the AppControllerSetupWizard.log file you see an error similar to the following:
Failed to register VSS writer.: Threw Exception.Type: Microsoft.SystemCenter.SetupFramework.SetupException, Exception Error Code: 0x80131500, Exception.Message: ErrorCode.VMMWriterRegistrationError
The work around to this issue, install App Controller to a SQL server that does not have a name that begins with a number, or don't specify the server's IP address instead of its name.
You can also install SQL Server locally on the same server as the App controller server, or you can create an alias in DNS (CName record) for the SQL Server that doesn't begin with a number.