Thanks kjj, finally solved with thread by methe2018, although to be exact I added 2 lines between original points 6 and 7 and tweaked the rest, thus:
I had the same problem, but I solved it.
1. Export passwords into a folder so you have saved your passwords.
2. Uninstall KPM.
3. Right-Click on Windows Icon, select & click on RUN.
4. Type in REGEDIT and click on OK. If prompt by a pop-up box, click YES.
5. Look for HKEY_CURRENT_USER
6. Click on it to expand the folders.
7. Look for Software
8. Click on it to expand the folders.
9. Scroll down to Kaspersky Lab folder, click on the > icon to expand the folders
10. Find Kaspersky Password Manager folder, then Right-Click and select DELETE.
11. Find any Password Manager folder in the Kaspersky Lab Folder, then Right-Click and select DELETE.
12. Exit REGEDIT and click on the file to install Password Manager again. This should complete the installation without any issues.
I wonder why Kaspersky does not allow installment package to work on regedit by itself or, if only allowed by local admin, *advise* ? I lost lots of time on this issue.