I also have a fresh (generic) install of Windows 7 Pro (64 bit on a Lenovo E73z).
This is the only update that reports itself as failed yet IE 11 appears to report that this update has installed (as earlier reported). But Control Panel/Installed updates does not appear to list this update. Note that this machine has no antivirus (as
yet) and no applications installed.
Microsoft seems to have abandoned any pretence of trying to resolve the issue. I suspect the update is installed, but failing to finish off properly.
And I have tried some of the suggestions above
Hiding/unhiding found two more updates, but fails this update.
First Microsoft Fixit did not find problems - no help
Second Microsoft Fixit (KB971058), ran for ages, reported update error 080070057 not fixed, but 'fixed' other things.
KB3038314 downloaded to 11% then failed.
Manual install got to around 30%, stalled for a while, then failed.