I was curious, so I downloaded the latest version of LS (build 141003) and uploaded it to my vps which is running Cpanel / WHS.
Went through the installation smooth without any hickup.
I did the same on my local WAMP server, and when I clicked through without giving the right details for the database, I got the error message you were mentioning:
But once I used the correct details it also went through smoothly. So on my 2 systems (vserver with Cpanel and the localhost WAMP installation I could only reproduce the error when it was a real error).
So I guess we will need to find some other hooks where the problem could be so that the developers will be able to reproduce the problem.
It doesn't seem to be a general problem with the installation process, it is also not a general problem with Cpanel installations. It must be something more specific then.