There must be some restriction with Windows services that we can't guess at the moment, or something in your deployment that is different from what we expect and that we still can't see.
But now you can remove Lightstreamer from the equation.
Please change wrapper.bat to issuing:
.\NOLS.bat > out.txt
and put NOLS.bat beside LS.bat, which just does:
echo test
Can you confirm that when you install the service you now see out.txt while you didn't see it in the previous attempts?