Since you are running the CA in deferred you need to send CustomActionData with a type 51 custom action instead of using Property.
Try this and see if it works:
<CustomAction Id='removeW32TimeTrigger_set'
Property='removeW32TimeTrigger'
Value='"[SystemFolder]sc.exe" triggerinfo w32time delete'
Execute='immediate'/>
<CustomAction
Id="removeW32TimeTrigger"
BinaryKey="WixCA"
DllEntry="CAQuietExec"
Execute="deferred"
Return="ignore"
Impersonate="no"
/>
<InstallExecuteSequence>
<Custom Action="removeW32TimeTrigger_set" After="CostFinalize" />
<Custom Action="removeW32TimeTrigger" After="InstallInitialize" />
</InstallExecuteSequence>