I just got off the phone with MS Tech support and will summarise what they told me.
1. They are aware of the issue and are looking at it.
They noted that some people have reported success by disabling their security software before attempting installation.
Since this update may require 2 restarts, you would need to make sure your security software is not starting at startup (I have not tried that).
2. This update relates to USB drivers and if your USB drivers
are up-to-date, you probably don’t need it anyway. I believe this update was rated as important, not critical.
3. It does happen that update will occasionally think that
you need an update when you don’t.
4.
Their advice, don’t worry about it and wait for MS to come up with a fix.
5.
They said that they would email me if they have any additional info and I will post in this thread.