When trying to create a Cloud Enabled Agent Install package, the following error is returned:
Failed to generate package. Package compression failed.
ITMS 8.x
The 7z.dll (7 zip) is used to compress the agent files. We've seen a couple of times that the application doesn't have rights to the 7z.dll file 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.