Ok, I get the confusion is whether “protecting this server” is telling you where to install it or where to get it from. The original interpretation is
A. (You may install a piece of ice)
B. (Protecting this server in the innermost position)
For A we assume the ice is from HQ, and for B, the whole part is telling you where you can install it: only in the server being run, and only in the innermost position.
The alternative interpretation is
C. (You may install)
D. (A piece of ice protecting this server)
E. (in the innermost position)
D is telling you to pick up an ice from this server, and C and E are telling you to install that ice you picked up in the innermost position.
This interpretation is weird because there’s no reason for it to say install. In fact, the ice is already installed - can you install it again?
In M:tG there is a zone called the stack where all spells go when they are cast, including “permanents” (cards that stay on the battlefield after they resolve from the stack). So in theory you could have an effect that allows you to cast a permanent card - putting it back on the stack, from where it would go back onto the battlefield - although this has never been done in practice. Probably because it’s confusing and pointless.
In netrunner there is no stack. So telling you to install a card that has already been installed would be like saying “put a card from the battlefield onto the battlefield”. Nothing would happen, because the card is already there. If M:tG wants to remove a card from the battlefield very temporarily, it says “exile it, then put it back onto the battlefield”. If netrunner wanted to do this, for example to remove the counters from Quicksand, it could say “remove it from the game, then install it” (or “return it to HQ, then install it” if the corp player could be trusted not to cheat).
I agree that the original interpretation of this card is overpowered, but I think it’s more likely that they printed a busted card than that they completely forgot about the terminology they have used for moving ice in the past.