Proceed to the Microsoft Update Catalog (as we all do when updates occasionally fail to automatically install) and install the update MANUALLY.
Here is a live Link to make it easier: https://www.catalog.update.microsoft.com/Search.aspx?q=KB4054517%20
I turned off the windows update service and tried the manual install 3 or 4 times over the several days of this mess.
Tonight, after making a couple of types of recovery images of the C drive, I tried installing KB4051963 to bring ...64 up to ....98 as some people have done. That update also failed to install manually.
THEN I check for windows updates and it says computer is up-to-date. I rebooted again after a while and it did a check and still says computer is up-to-date without installing KB4054517. I checked in installed items, and it's not there.
I wonder if MS has recalled the update.
My version is still 16299.64