Update:
I download the Sims4 torrent the second time to disregard a possible corrupted download. Unfortunately, it gave me the same result. 'Touchup.exe' is not recognize as an internal or external command, operable program or batch file.
Fortunately looks like I found a workaround for this problem.
1. I moved the downloaded Sims4 folder via torrent to the Game Installers Folder (NOT DOWNLOADED GAMES FOLDER) of ZLOrigin.
2. I added ZInstaller.bat to the ZLOrigin Library as a game.
3. I launched the ZInstaller.bat from the ZLOrigin Library.
4. Just wait for it to c