This was a pain for me, so I hope this helps someone.
I made 15 attempts to update my ASUS CM6870 from the Windows 10 Anniversary Edition to the Creators Edition (Creators Update), I *always* hung hard around 40 or 42% after the first system reboot, with the 'rolling' animation ground to a halt. This almost always points to a hardware problem.
I did everything to find the bad hardware! I disconnected all of the USB, ripped out all of the superfluous drivers, did a clean reboot, did a driver uninstall on my NVIDIA drivers using DDU, and uninstalled every program that had a funky driver like the VMWare standalone converter and my Cisco Anyconnect VPN. Nothing worked.
Each reboot reported "0xc1900101 - 0x30018 the installation failed in the FIRST_BOOT phase with an error during SYSPREP operation"
Digging into the clues from files left behind in C:$WINDOWS.~BT\Sources\Panther, I saw that the last thing before failure was a bunch of SPPNP messages which seems to be the SYSPREP driver loading phase. There were also a bunch of <NUL> characters at the end of the file. Some piece of hardware was refusing to play nice. I had painstakingly removed everything I could without opening the case.
Finally, based on various hints on forums, I cracked open the PC and pulled out my PCIe wireless card. Boom. Fully installed.
The Wireless card was a PCIe x1 in a PCI x16 slot if that matters, and it was the ASUS branded MediaTek Railink technologies RT3090 wireless card.
(PCI\VEN_1814&DEV_3090&SUBSYS_760111AD&REV_00)
Once the Creators Update was installed, I was able to reinstall the card without incident. Go figure.
An interesting cure for the problem. I have been tearing my (scant) hair out over this for weeks.
Would uninstalling the wireless card have the same result? This would save having to go into the case.
Thanks!