I posted to this thread towards the beginning, mostly as a "me too," as I was having much the same problem with this update as everyone else... It would install completely but then fail upon reboot and eventually undo all changes. There was no error code and the install history showed that the update was installed even after the "undo all changes."
On page 5? We found out that if there was a space problem somehow it wasn't likely to be associated with a partition. I suggested you try to get more information about your failure, e.g. with a trace. But even just looking in the logs would probably have found something. The problem is that these failures are mostly of a class of error known as "This will never happen." so of course there is no simple external symptom for the user to report (especially since the recovery action for them is to try to undo things and pretend that they didn't happen) and the only way to get more details about them is to dig into the diagnostics in whatever way you can.