Executing wix msi custom actions as system

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I am using WIX to build a an MSI that will be executed as a regular user but with system privileges (AlwaysInstallElevated=1). I have defined two Custom Actions that execute net.exe.
The net.exe commands are not getting executed as a regular user. I have also tested executing this msi as an Administrator and the net.exe commands are getting executed.
I have logged the msi output and I see error codes that lead me to believe that the net.exe commands are not being executed elevated. I'm reaching out to the community to see if

  1. What I'm trying to do is possible
  2. Do I need to instead use an exe as a custom action in order for the exe to install elevated.

Thanks in advance for the feedback.

<CustomAction Directory="TARGETDIR" ExeCommand="[SystemFolder]net.exe user TestUser /add" Return="ignore" Execute="deferred" HideTarget="no" Impersonate="no" Id="Command1">Command1</CustomAction>
<CustomAction Directory="TARGETDIR" ExeCommand="[SystemFolder]net.exe localgroup Administrators TestUser /add" Return="ignore" Execute="deferred" HideTarget="no" Impersonate="no" Id="Command2">Command2</CustomAction>
<InstallExecuteSequence>
    <Custom Action="Command1" After="PublishProduct">NOT Installed</Custom>
    <Custom Action="Command2" After="Command1">NOT Installed</Custom>
</InstallExecuteSequence>

Machine Policy and User policy allows for msis to be executed as system.

MSI (c) (DC:F8) [09:17:39:438]: Machine policy value 'AlwaysInstallElevated' is 1
MSI (c) (DC:F8) [09:17:39:438]: User policy value 'AlwaysInstallElevated' is 1
MSI (c) (DC:F8) [09:17:39:438]: Running product '{34ED8E61-40EA-47CE-95E7-8EE3CDBCB1E8}' with elevated privileges: All apps run elevated.

Errors

MSI (s) (8C:8C) [20:39:18:989]: Executing op: ActionStart(Name=Command1,,)
MSI (s) (8C:8C) [20:39:18:989]: Executing op: CustomActionSchedule(Action=Command1,ActionType=3170,Source=C:\,Target=C:\WINDOWS\SysWOW64\net.exe user TestUser /add,)
CustomAction Command1 returned actual error code 2 but will be translated to success due to continue marking
MSI (s) (8C:8C) [20:39:19:535]: Executing op: ActionStart(Name=Command2,,)
MSI (s) (8C:8C) [20:39:19:535]: Executing op: CustomActionSchedule(Action=Command2,ActionType=3170,Source=C:\,Target=C:\WINDOWS\SysWOW64\net.exe localgroup Administrators TestUser /add,)
CustomAction Command2 returned actual error code 1 but will be translated to success due to continue marking
2 Answers
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