I encountered this issue and was able to fix it, kind of.
My CnCNet YR was several versions behind (before 8.65.0) when I upgraded in place to 8.66.0; when upgrade was complete, was prompted to install .NET 4.8.1. I have Windows 10 Enterprise LTSC 2019 installed; it has .NET 4.7.2 built in, can install .NET 4.8 but not 4.8.1.
I uninstalled CnCNet YR and started downloading standalone installers, from 8.64.1 to 8.66.0. Appears 8.64.1 and below don't prompt for any new .NET Frameworks. At end of 8.65.0 install, was prompted to install .NET 4.8 as needed in that version's release notes.
After installing .NET 4.8, was able to apply 8.65.1, then 8.65.2, then finally 8.66.0, which DID NOT prompt for .NET 4.8.1 this time.
I hope this will work for your Windows 7 machine as well.