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Installation of any WSP fails with message: Name cannot begin with the ' ' character, hexadecimal value 0x20

The problem is that sharepoint doesn't report which file is causing trouble. And we have problem installing any WSP, so I think this file is somewhare deployed on SP server. If you take a look at second log it reports that error is in the line 1949... When I run configuration wizard I get this error in log for every wsp installed.

I've searched web config and unpacked some WSPs but these do not have that many lines.

    11/14/2017 12:29:36.96  vssphost5.exe (0xA36C)                      0x044C  SharePoint Foundation           General                         8zoq    High        Solution Deployment : Validation of cab failed for solution activateaccounts_2013.wsp. Exception info : Name cannot begin with the ' ' character, hexadecimal value 0x20. Line 1949, position 6.     

Even SP Configuration Wizard fails with same message

SharePoint Foundation Upgrade   SPUpgradeSession    ajxnm   ERROR   Upgrade [SPFarm Name=SharepointTSA_SharepointTSA_ConfigDB] failed.  00000000-0000-0000-0000-000000000000
11.15.2017 10:10:25.24  psconfigui (0x5528) 0x1140  SharePoint Foundation Upgrade   SPUpgradeSession    ajxnm   ERROR   Inner Exception: Name cannot begin with the ' ' character, hexadecimal value 0x20. Line 1949, position 6.   00000000-0000-0000-0000-000000000000
11.15.2017 10:10:25.24  psconfigui (0x5528) 0x1140  SharePoint Foundation Upgrade   SPUpgradeSession    ajxnm   ERROR      at System.Xml.XmlTextReaderImpl.Throw(Exception e)     at System.Xml.XmlTextReaderImpl.ParseQName(Boolean isQName, Int32 startOffset, Int32& colonPos)     at System.Xml.XmlTextReaderImpl.ParseElement()     at System.Xml.XmlTextReaderImpl.ParseElementContent()     at System.Xml.Schema.Parser.Parse(XmlReader reader, String targetNamespace)     at System.Xml.Schema.XmlSchemaSet.ParseSchema(String targetNamespace, XmlReader reader)     at System.Xml.Schema.XmlSchemaSet.Add(String targetNamespace, String schemaUri)     at Microsoft.SharePoint.Utilities.SPUtility.GetSharePointXmlSchemaSet(Int32 desiredPathVersion)     at Microsoft.SharePoint.Utilities.SPUtility.XsdValidateXml(XmlTextReader xmlStreamReader, String friendlyName, String pathXsdFile, String tagExpectedRootNode, Int32 desiredPathVersion, ValidationEventHandler xsdValEventHandler)     at Microsoft.SharePoint.Administration.SPFeatureDefinition.ValidateFeatureXml(String pathToFeatureAndElementManifestXsdFile)     at Microsoft.SharePoint.Administration.SPFeatureDefinition.ValidateDefinition(String pathToFeatureAndElementManifestXsdFile)     at Microsoft.SharePoint.Administration.SPFeatureDefinitionCollection.AddCore(SPFeatureDefinition featdef, SPSite site, String solutionHash, Boolean fForce, Boolean fDoValidation, String pathToFeatureAndElementManifestXsdFile)     at Microsoft.SharePoint.Administration.SPFarm.EnsureOutOfBoxFeaturesInstalled(String[] rgsOutOfBoxFeatures, Int32 compatibilityLevel)     at Microsoft.SharePoint.Upgrade.SPActionSequence.Upgrade() 00000000-0000-0000-0000-000000000000
11.15.2017 10:10:25.24  psconfigui (0x5528) 0x1140  SharePoint Foundation Upgrade   SPUpgradeSession    ajxnm   ERROR   Exception: Action 4.0.5.0 of Microsoft.SharePoint.Upgrade.SPFarmSequence failed.    00000000-0000-0000-0000-000000000000
11.15.2017 10:10:25.24  psconfigui (0x5528) 0x1140  SharePoint Foundation Upgrade   SPUpgradeSession    ajxnm   ERROR      at Microsoft.SharePoint.Upgrade.SPActionSequence.Upgrade()     at Microsoft.SharePoint.Upgrade.SPUpgradeSession.Upgrade(Object o, Boolean bRecurse)  00000000-0000-0000-0000-000000000000
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We found answer

https://social.msdn.microsoft.com/Forums/en-US/bd673e3f-6709-462a-aa79-edf984468862/cant-retract-wsp?forum=sharepointdevelopmentlegacy&prof=required

The file: C:\Program Files\Common Files\Microsoft Shared\web server extensions\15\TEMPLATE\XML\wss.xsd was corrupt.

It was line 1949 pos 6

< name="AssociationUrl" type="RelativeUrl" />

Replaced it with

<xs:attribute name="AssociationUrl" type="RelativeUrl" />

P.S. Special thanks to Peter!

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