I've had the same error on my install and it's taken ages to figure out, the dnn file for IFrame contains a tag [app_code] - this is the only recently released module (since dnn4.7) which has this tag, hence why its the only module which "seems" to be broken.
In my case it was a specific code in web.config - the resource installer trys to read from the /configuration/system.web/codeSubDirectories/ node - if it cant locate it then it fails and causes the above issue.
As I have extra apps in sub folders which aren't DNN related I had added the key: < location inheritInChildApplications="false" > which contains the system.web node and hides it from sub apps (we have a big site and this is essential). This means the actual path is /configuration/location/system.web/codeSubDirectories/
I temporarily commented out the location lines and IFrame installed successfully.
incedentaly - this location node also breaks and asp.ajax code in your portal (saying you need a scriptmanager before updatepanel)
Hope this helps,
Andy.