Good morning,
WADK 10 version 1607 can not be installed on Windows 7 and 2008 R2, due to this error when creating iso: https://social.technet.microsoft.com/Forums/en-US/60d86683-68e2-4a93-838b-231d61854804/bcdedit-returned-an-error-when-generating-an-media-iso-in-mdt?forum=mdt
Running manually the Bundle creation step (i.e. from an elevated command line and setting debug level 2 (debug=2) in parameters.ini, you will be asked to do interactive steps (see https://www.ibm.com/support/knowledgecenter/en/SS63NW_9.2.0/com.ibm.tem.life.doc_9.2/Lifecycle_Man/OSD_Users_Guide/c_mdt_bundle_creation_options.html) but you will read on PowerShell output the error you hit.
I hope this helps, regards
Michele.T