Same problem here, Lenovo G500 i3. All drivers are up to date, disabled antivirus, VPNs, network drivers, Graphic Card drivers, Blutooth drivers. Tried all methods for upgrade, followed all recommendations posted in different forums. Did a full test on Hardware components. Still No success. Fails at 45% with samelogs and errors posted here. Why Microsoft does not simply posts a tool to tell us which Driver is cusing the issue?
One work around, which stops the rebooting.. is the option in the advanced options of the windows update panel.. You can defer feature updates... If you pick a big number It will stop trying to put in 1709.. and will just patch 1703...
This is not a permanent fix... as we need to do the 1709 and beyond updates..
I still have some hope that finally Microsoft will do something to help us out...