Most likely this is a account/user profile issue. If I
remember correctly, the current profile is the profile of currently
logged-in interactive user, which may or may not be "default
profile". Also, to access other user profile the account must have
a permission, which is not the case for the SYSTEM account.
Therefore, even a necessary profile is loaded, the CF might not be
able to access it.
If you set CF service to run under the same interactive
account under which the command line works, and after that
CFEXECUTE works - this is it. You also can try to enable "Allow
service to interact with desktop" for debugging purposes. So, you
would actually see that DOS window that might contain error message
and/or prompt for something.
You also may try
this tag that
allows some of the above, if you cannot change settings on the
server.