HKEY_USERS.DEFAULT it's actually the profile for the Local System account, so the registry entry could be redirected there if your custom action is set to run as deferred with no impersonation, which means it is set to run under the SYSTEM account with full admin rights.
Also, if you just want to create a certain registry entry based on a condition, you can create the entries from Registry page, and set install conditions on their components from Organization page.