I have continued to have this exact issue since the early beta roll out of this build. Machine does not have VT-d enabled, I have disabled or disconnected everything except the monitor, keyboard, mouse and HHD-1. I've dropped the RAM expansion that was preformed over a year ago. This distinctly appears to be a problem with the update itself. I have booted to a minimal boot configuration and it still locks up at the splash screen on the update reboot. I have used the update repair tool and it locks up at the splash screen on the update reboot.
Microsoft, in it's infinite wisdom, no longer even allows us to disable updates from occurring. Now we can only delay it for a few days and then have to go through the entire process of download, install and lock up once again at that point.
There appears to be too many people having this problem for it to be anything other than an issue with this particular build.