According to your post, the behavior you describe is inherent to devices that are not present in the provision used to sign the app. Please verify that the ad-hoc/developer provision you use to sign your app includes the iOS devices that your beta tester is trying to install it on. You can compare the device UDID to the one available in your provision in Telerik AppBuilder (go to User -> Options -> iOS -> Provision List -> Devices).
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