So I was digging into the installer a little bit and it looks like there is an error where it is skipping adding some registry keys.
notably it didn’t add
HKLM,"SOFTWARE\Microsoft\Windows NT\CurrentVersion\drivers.desc",NotchLCcodec.dll,,"NotchLC video codec" HKLM,"SOFTWARE\Microsoft\Windows NT\CurrentVersion\Drivers32","VIDC.NLC1",,"NotchLCcodec.dll"
I added these entries and the NotchLC option showed up in the AVI codec options. I did an encode and it seemed to work. It seems like something might be amiss in the installer code.