Also I tried installing the extension but but I had an error saying that I need to install Dynamics Server. Installing the server also gave an error:

and log:
15:43:18| Info| === Setup bootstrap logging started 10/26/2021 3:43:18 PM ===
15:43:18| Info| Bootstrap version: 8.2.2.248.
15:43:18| Info| User: Mark.
15:43:18| Info| Invoked with command line: C:\Temp\SetupBidsExtensions.exe
15:43:18| Info| Running C:\Temp\SetupBidsExtensions.exe
15:43:18| Info| Loading bootstrap library C:\Temp\BIDSExtensionsSetup.dll
15:43:18| Info| Microsoft Dynamics® 365 Report Authoring Extension is not currently installed.
15:43:18| Info| Closing bootstrap library C:\Temp\BIDSExtensionsSetup.dll
15:43:19| Info| Patchfile target Product code: {0C524DF0-0409-0080-BF3E-80D80B490D53}
15:43:19| Info| Patchfile target version: 8.0.0000.0000
15:43:19| Info| Patchfile target language: 1033
15:43:19| Info| Patchfile target upgrade code: {3315FF72-9F24-423B-B854-7EDCF3394F50}
15:43:19| Info| Patchfile passed validation checks.
15:43:19| Info| MSP file C:\Temp\Update\Bids_KB4010816_I386_1033.msp will be installed
15:43:19| Info| Searching for MU Service in system
15:43:19| Info| MU service found in system.
15:43:19| Info| MU is registered with AU
15:43:19| Info| MU Service registration status = Registered
15:43:24| Info| Initializing COM.
15:43:24| Info| Initialized COM.
15:43:24| Info| Retrieving language ID from base language package
15:43:24| Info| Created temporary regkey Software\Microsoft\MSCRMSetup
15:43:24| Info| Querying current AutomaticUpdatesNotificationLevel
15:43:24| Info| Pausing Automatic Updates
15:43:24| Info| Automatic Updates paused
15:43:24| Info| SearchCriteria: CategoryIDs contains '25af568d-88b3-4cad-b694-07bc7f6adf24'
15:43:30| Info| Filtering for product update bundle: Setup Update for Dynamics 365 Report Authoring Extension
15:43:30| Info| Search found 2 updates in the collection
15:43:30| Info| Resuming automatic updates
15:43:30| Info| Deleted temporary regkey Software\Microsoft\MSCRMSetup
15:43:30| Info| No updates availabe for product.
15:43:30| Info| Uninitializing COM.
15:43:30| Info| Uninitialized COM.
15:43:34| Info| Copying installer files to local directory:
15:43:34| Info| Package: C:\Temp\BIDSExtensions.msi, Options: ADDLOCAL="Installer" INSTALLDIR="C:\Users\Mark\AppData\Local\Temp\MSCRM_{41F07C0C-6F8D-4802-96D6-A20F7954A24A}" TARGETDIR="C:\Users\Mark\AppData\Local\Temp\MSCRM_{41F07C0C-6F8D-4802-96D6-A20F7954A24A}" ALLOWRUN=1 PATCH="C:\Temp\Update\Bids_KB4010816_I386_1033.msp"
15:43:35| Info| Loading bootstrap library C:\Users\Mark\AppData\Local\Temp\MSCRM_{41F07C0C-6F8D-4802-96D6-A20F7954A24A}\BIDSExtensionsSetup.dll
15:43:35| Info| System requirements have been met. Proceeding with setup.
15:58:24| Info| Clean up all the BITS related registry key values.
15:58:24| Info| Closing bootstrap library C:\Users\Mark\AppData\Local\Temp\MSCRM_{41F07C0C-6F8D-4802-96D6-A20F7954A24A}\BIDSExtensionsSetup.dll
15:58:24| Info| Clean up the BITS downloader.
15:58:24| Info| Uninitializing COM.
15:58:24| Info| Uninitialized COM.
15:58:24| Info| Clean up the BITS downloader.
15:58:25| Info| === Setup bootstrap logging ended 10/26/2021 3:58:25 PM ===
16:00:49| Info| === Setup bootstrap logging started 10/26/2021 4:00:49 PM ===
16:00:49| Info| Bootstrap version: 9.0.2.3034.
16:00:49| Info| User: Mark.
16:00:49| Info| Invoked with command line: C:\Temp\SetupServer.exe
16:00:49| Info| Running C:\Temp\SetupServer.exe
16:00:49| Info| Loading bootstrap library C:\Temp\ServerSetup.dll
16:00:50| Info| Dynamics 365 is not currently installed.
16:00:59| Error| System requirements check failed.
16:00:59| Info| Closing bootstrap library C:\Temp\ServerSetup.dll
16:00:59| Info| Clean up the BITS downloader.
16:00:59| Info| Uninitializing COM.
16:00:59| Info| Uninitialized COM.
16:00:59| Info| Clean up the BITS downloader.
16:00:59| Info| === Setup bootstrap logging ended 10/26/2021 4:00:59 PM ===
16:05:35| Info| === Setup bootstrap logging started 10/26/2021 4:05:35 PM ===
16:05:35| Info| Bootstrap version: 9.0.2.3034.
16:05:35| Info| User: Mark.
16:05:35| Info| Invoked with command line: C:\Temp\SetupServer.exe
16:05:35| Info| Running C:\Temp\SetupServer.exe
16:05:35| Info| Loading bootstrap library C:\Temp\ServerSetup.dll
16:05:36| Info| Dynamics 365 is not currently installed.
16:05:36| Info| Closing bootstrap library C:\Temp\ServerSetup.dll
16:05:36| Info| Patchfile target Product code: {0C524DF0-0409-0080-BF3E-80D80B490D53}
16:05:36| Info| Patchfile target version: 8.0.0000.0000
16:05:36| Info| Patchfile target language: 1033
16:05:36| Info| Patchfile target upgrade code: {3315FF72-9F24-423B-B854-7EDCF3394F50}
16:05:36| Error| Patch file is not valid for installing package. (PackageValidator.cpp:CWindowsInstallerPatchPackageValidator::Validate:364).
16:05:36| Info| Expected parameters for update file:
Upgrade code - {20EA1269-CD24-459C-B8D7-E227D70386D9}
Product code - {0C524D55-1409-0090-BD7E-530E52560E52}
ProductLanguage - 1033
BaseVersion - 9.0.2.3034
16:05:36| Info| Error not a valid MSP file - C:\Temp\Update\Bids_KB4010816_I386_1033.msp
16:05:36| Error| The update file is not valid for installation of this application. (Setup.cpp:CCrmSetup::RetrieveUpdateFilePath:1186).
16:05:36| Info| Clean up the BITS downloader.
16:07:16| Error| The update file is not valid for installation of this application., Error, OK
16:07:16| Info| InputResult: OK
16:07:16| Info| Uninitializing COM.
16:07:16| Info| Uninitialized COM.
16:07:16| Info| Clean up the BITS downloader.
16:07:16| Info| === Setup bootstrap logging ended 10/26/2021 4:07:16 PM ===