When trying to create a Cloud Enabled Agent Install package, there is an error: Failed to generate package. Package compression failed.
We use a 7z.dll (7 zip) to compress the agent files. We've seen a couple of times that the application doesn't have rights to the 7z.dll location.
Adding Everyone with Full Control to C:\Program Files\Common Files\Altiris should resolve this issue.
Also check that Anti Virus is not preventing access to this directory.