The switch from Windows 10 version 20H1 to 20H2 is not really a normal major update. 20H2 is using the same Cumulative Updates as 20H1. There is just a very small enablement package that is run to switch between 20H1 and 20H2. I believe that it simply enables
changes that are already installed and in a dormant state.
I was also checking the past history of Cumulative Updates. The ones labeled Preview are not identical to the final "patch Tuesday" monthly CUs, so there is some hope of change this week.
It does sound like doing an in-place repair/upgrade has the greatest chance of success, even if this has failed before. Doing things such as a "clean boot" first and disconnecting all unneeded peripherals first, such as USB devices, or SD cards, etc. may
help.
A clean boot means disabling all Startup items shown in Task Manager and using msconfig to disable all non-Microsoft Services, then restarting before attempting the upgrade. I usually have to do this on my wife's older PC prior to a new Windows 10 version
upgrade.