You are trying to upgrade an existing Lotus Notes install to Notes 8.5.1, and you would like to add features using the ADDLOCAL parameter, but you are not able to install the client. The installation fails with an error stating "Lotus Notes 8.5.1 Setup Failed". The installation does not complete, and the client is not upgraded to Notes 8.5.1.
Resolving the problem
You can implement the ADDLOCAL= parameter to install features before upgrading, and then upgrade the client to Notes 8.5.1.