Update all this please then reboot PC and try again...
Latest version of DirectX see this page
http://www.microsoft.com/en-ca/download/confirmation.aspx?id=35
Reinstall Microsoft C++
NOTE>>> you need to select the x64 or the x86 file depending on what architecture your computer has. To find this out, Click Start, right click on "Computer" and select "Properties". Under system type is should say "32-Bit Operating System" or "64-bit Operating System". If 32-bit operating system, download the x86 file, and if 64-bit download the x64 file.
http://www.microsoft.com/en-US/download/details.aspx?id=40784
Update your Microsoft .NET framework.
http://www.microsoft.com/en-ca/download/details.aspx?id=30653
Adobe Flash Player update
http://get.adobe.com/flashplayer/
I did as you requested and updated everything, except for the DirectX. Message stated that I had the current or newer version. Everything else updated. I then restarted my system and got the same error message.
DirectX Setup Error: An internal error occurred.
I can still play BF 4 (went into test range to check) and had no issues. Apparently this is localized to the BFH install package.
I tried to repair the game last night and It did not work. Attempting to repair again at the moment, but it will take 1 1/2 hours to do. If it works, i'll advise. If not, same.
