Removing that gets the following error in the MSI logs:
DEBUG: Error 2819: Control Folder on dialog InstallDirDlg needs a property linked to it
Basically this means that the “browse for folder” control isn’t linked up to an actual property value. You’ve used the value INSTALLLOCATION for the application folder – which in turn means you’ll need to add the following value to link the dialog:
<Property Id="WIXUI_INSTALLDIR" Value="INSTALLLOCATION" />
Good luck!