I already removed /qn and /norestart and posted the test results above. I understand where the flags should be included; when I said "command line field", I was referring to the command line field on the package configuration screen.
I know this command works from the command line:
msiexec /qn /norestart /i backup2.msi ADDLOCAL=Feature_BackupEngine,Feature_BackupServer,Feature_ManagementTools /L*v %TEMP%\AltaroInstall.log
And we know /qn and /norestart don't need to be included in the package manager command line field.
However, it's not clear what does need to be put in there. What about the /i switch?
The last thing I tried was ADDLOCAL=Feature_BackupEngine,Feature_BackupServer,Feature_ManagementTools /L*v , but it failed (see above).