Clean install Yosemite failed with "invalid request"

Scenario:
I tried to install OS X 10.10 on macbook pro 2010 model but failed with an error "invalid request". Please see attached installer.log.

Steps tried:
Upgrade from 10..6.8 - failed with "invalid request" error
Clean install with bootable usb installer - failed with "invalid request" error (installer.log)
Jun  1 16:00:04 MacBook-Pro OSInstaller[414]: Evaluating 1 disks
Jun  1 16:00:04 MacBook-Pro OSInstaller[414]: Evaluating SKDisk { BSD Name: disk0s2 Mount point: /Volumes/Macintosh HD Role: kSKDiskRoleLegacyMacSystem Type: kSKDiskTypeHFS }
Jun  1 16:00:04 MacBook-Pro OSInstaller[414]: Macintosh HD is a valid target.
Jun  1 16:00:04 MacBook-Pro OSInstaller[414]: Evaluating 1 disks
Jun  1 16:00:04 MacBook-Pro OSInstaller[414]: Evaluating SKDisk { BSD Name: disk17s2 Mount point: Not Mounted Role: kSKDiskRoleLegacyMacData Type: kSKDiskTypeHFS }
Jun  1 16:00:04 MacBook-Pro diskmanagementd[417]: DM <-T-[DMToolRecoveryPartition ensureRecoveryPartitionForVolume:]
Jun  1 16:00:04 MacBook-Pro OSInstaller[414]: Ensure recovery failed.
Jun  1 16:00:04 MacBook-Pro OSInstaller[414]: OSIInstallElement <OSIInstallRecoverySystemElement: 0x7f99b2938f10> errored out:Error Domain=com.apple.DiskManagement Code=-69886 "Invalid request." UserInfo=0x7f99b2a2dde0 {NSLocalizedDescription=Invalid request.}
Jun  1 16:00:04 MacBook-Pro OSInstaller[414]: ------- Install Failed -------
Jun  1 16:00:04 MacBook-Pro OSInstaller[414]: Operation: Ensure recovery system failed, Failure Reason: Error Domain=com.apple.DiskManagement Code=-69886 "Invalid request." UserInfo=0x7f99b2a2dde0 {NSLocalizedDescription=Invalid request.}

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Erase disk with bootable usb installer  - failed with "couldn't open disk"
Installer-Log-06-01-15.txt
LVL 21
MazdajaiAsked:
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serialbandCommented:
It seems to be having trouble with your disk.  Have you run Disk Utility to Repair Disk before you started?
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MazdajaiAuthor Commented:
Yes in the OS X Installer.

Verify and repair disk permission - fixed some permission issue.
Verify disk - exit code is 0.

Update:
I did 'Verify Disk' earlier (exit code of zero) and never run 'Repair Disk'. I ran repair disk (With exit code of zero but additional one line of output that I forgot to save).

But... I am now able to erase the disk and clean install works successfully.

Thanks a lot serialband!
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