What is this D Drive, another internal hard disk, a 2nd partition on the only internal hard disk, (C drive and D drive as two partitions), an external hard disk, or a CD/DVD drive?

The D drive, whatever that is, doesn't 'read' .exe files. It is where those files are saved to, or stored. So it is the Operating System that doesn't read the .exe files. Any error messages?

What happens if you drag, (copy), an .exe file from that D drive to the C drive where the OS is installed? Does the OS start the setup process then when you double click it?