I get the same exact problem. Over the past few days I tried SEVERAL clean boots, and allowing it to install. NEVER does and it keeps trying on its own. I've seen this a few times before with some updates. The only thing that I could do is ignore the update.
There needs to be more intelligence built into Windows Updates... when it fails twice Microsoft needs to get automatic alerts so they can see if there is a systemic problem - and fix it.
this is clearly systemic.