Can't set up crowd as windows service

After struggling with performance of Crowd 3.2.3 post upgrade from 2.5, we upgraded to 3.2.5 using a new install and import of backup. Upon configuring, everything is fine and I can start crowd using start_crowd.bat file. Yet, I am unable to set it up to run as a service. Following the instruction from https://confluence.atlassian.com/crowd/installing-crowd-as-a-windows-service-82870454.html, I execute command

service.bat install Crowd

And the service is installed. However when I try to start the service, I get an error message and the following appears in the tomcat logs:

[2018-08-31 16:12:05] [info] [15088] Commons Daemon procrun (1.1.0.0 32-bit) started
[2018-08-31 16:12:05] [info] [15088] Running 'Crowd' Service...
[2018-08-31 16:12:05] [info] [14700] Starting service...
[2018-08-31 16:12:05] [error] [14700] %1 is not a valid Win32 application.
[2018-08-31 16:12:05] [error] [14700] Failed creating Java C:\jdk-8u162\jre\bin\server\jvm.dll
[2018-08-31 16:12:05] [error] [14700] %1 is not a valid Win32 application.
[2018-08-31 16:12:05] [error] [14700] ServiceStart returned 1
[2018-08-31 16:12:05] [error] [14700] %1 is not a valid Win32 application.
[2018-08-31 16:12:05] [info] [15088] Run service finished.

Any suggestions on how I can get this fixed?