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The Region to Polygon Coverage tool fails to execute.
The Region to Polygon Coverage tool found by way of Coverage Tools > Data Management > Composite Features, uses the ArcGIS workstation engine and therefore the same functions as ArcGIS workstation. Workstation functions do not work if there is a space in the workstation internal workspace path. When ArcGIS is installed in the default location: c:\programs files\... the path contains a space and the tool does not work.
The internal workspace path is defined as the system environment variable TEMP. To make this tool work navigate to the System properties dialog and change the 'TEMP' environment variable path to one with no spaces.