had the same issue, and an easy fix

on the remote machine, go to your User Account in Control Panel

Pick your Account

Select Manage Network Passwords

add an entry

put in the name of the report server

put in the user and password you use to login

apply it

try to run the report builder app again and it should download and install

has to do with permissions not getting passed for non-domain memebers so that the ClickOnce install routine can download the application file