A SOLUTION
I had this same issue today. I solved it by:
- Hide the Update causing the problem
- Check for Updates
- Install updates that were previously not available
- Restore Hidden Updates
- Check for Updates
- Install this Update but it will Fail with the same Error
- Hide this Update
- Check for Updates
- Install updates that were previously not available
- Restore Hidden Updates
- Check for Updates
The Updates that failed end up not being necessary I assume. They end up going away. But you yoou end up with a clean updated computer with no persisting Hidden Update.
I hope this helps!
This did not work. Followed the steps to step 8 and no further updates were found, un-hid KB3038314 and tried to instal with exactly the same failure as original time.