Solution
This is expected behaviour. In the installer's properties, there is an option for the developer to distribute the installer with or without the runtime engine needed to run the application. This option can be found by
right-clicking the installer>>Properties>>Additional Installers, as illustrated below.

By default,
automatically select recommended installers option is selected. In this case, LabVIEW automatically selects recommended additional installers to distribute with an installer based on the build specifications on the
Source Files page. Even if an empty VI is being distributed, a LabVIEW Runtime Engine will be included. When LabVIEW Runtime Engine is included, the end-user will find licenses in the license folder at
..\builds\Project Name\Installer Name\Volume\license. If the
automatically select recommended installers option is not selected, and no additional installer is included, the license folder will be empty.