Hi Berserk, let me share with you the documentation available for the topics you are inquiring about.
- Intel® Wi-Fi Products — Silent installation of wireless drivers and Intel® PROSet/Wireless Software
- Intel® Wi-Fi Products — Silent installation of wireless components with Setup.xml
- Intel® Wi-Fi Products — Silent installation of wireless drivers and PROSet version 13.x
- Intel® Wi-Fi Products — Wi-Fi Profile Management
- Intel® Wi-Fi Products — Steps to create a package with a Prelogon profile
- Intel® Wi-Fi Products — Single Sign On (SSO) features and FAQ
It took me a while, but I think I figured out the problem. The "-c setup.xml" argument isn't supposed to point to the *.xml file. That *.xml file should always be named setup.xml anyways. The "-c" argument points to a specific configuration ID to use. Notice in your setup.xml file you have one Configuration block labeled Configuration Id="default"? I think you can have separate Configuration Id's that specify different things. So depending on the installation scenario, one setup.xml can include multiple different options.
Tl;Dr, try removing the -c argument similar to ...
Setup.exe -log "C:\ProsetInstall.log"
The following may also work ...
Setup.exe -log "C:\ProsetInstall.log" -c setup
P. S. I couldn't find good documentation for this anywhere. I got mine to work using trial and error.