I tried to remove CSPApplication tag from XData and the web application that is on the screenshot was created as well. Looks like manifest creates it with namespace by dafault.

Did you mead INSTALLERMANIFESTLOGLEVEL=3 in Command-Line Properties?

Where I have to put the Verbose property? I found it only in <Log> tag Level property value  in the documentation. But I did not specify any Log tags in my XData. If you mean pLogLevel parameter in the setup method, it is already = 3.

My setup method: 

ClassMethod setup(ByRef pVars, pLogLevel As %Integer = 3, pInstaller As %Installer.Installer, pLogger As %Installer.AbstractLogger) As %Status [ CodeMode = objectgenerator, Internal ]
{
   #; Let XGL document generate code for this method.
   Quit ##class(%Installer.Manifest).%Generate(%compiledclass,
      %code, "MyInstall")
}