I don’t think there are any restrictions on where you install Octave. Older versions on windows had issues with paths that included spaces, so it defaulted to C:\Octave instead of the Program Files folder. If this is a deployment, unless I misunderstand your meaning, installing in an individual user’s folder would render it only available to that one user, which would be an issue if you have multiuser systems. Something like reverting back to C:\Octave might get around that problem.
I would still suggest trying that location and having your deployment replace the BLAS Switcher shortcut with a version lacking the RunAs switch. That would seem most likely to work with current versions of the software.