Wix4 getting error 1053 when trying to install a batch as service

Question

I'm trying to build an MSI installer for a nodejs application that needs to run on a windows machine as a service. The issue is I have multiple environment variables that need to be set for the service to start like a database uri. This is why I've written a small batch file that sets the environment variables and starts my node application. I don't want the service to start immediatly, so the batch file can be edited to point the environment variables to the correct values. This is the WiX component I used to create the service:

<ComponentGroup Id="ServiceComponent">
  <Component Directory="MYAPPLICATIONFOLDER">
    <File KeyPath="yes" Name="start.bat" Source="src\start.bat" />
    <ServiceInstall
      Id="ServiceInstaller"
      Name="MyTool"
      DisplayName="My Tool"
      Description="My awesome tool by ACME Inc."
      Type="ownProcess"
      Vital="yes"
      Start="auto"
      Interactive="no"
      ErrorControl="ignore"
    />
    <ServiceControl Id="StartService"
      Stop="both"
      Remove="uninstall"
      Name="MyTool"
      Wait="yes"
    />
  </Component>
</ComponentGroup>

<Feature Id="MyAwesomeToolFeature">
  <ComponentGroupRef Id="ProductComponent" />
  <ComponentGroupRef Id="ServiceComponent" />
</Feature>

The Product Component only contains the js files that are necessary to start the application. When I try to run the service from the Windows Service Manager I get this error:

I've tried different options but only could get it to the Error 1053.