Prism message: "You are trying run Prism installed on a different computer on your network, and this is not allowed. You must install Prism on your computer"

Prism must be installed on a local drive, not a networked drive. How does it decide whether a drive is networked or not?  It uses the Windows  system function GetDriveType to check if a drive is local or networked. You can see this yourself. In windows explorer right-click on drive d: and choose Properties command, and then look at the General tab.