I had the same issue, but decided to resize NTFS partition by using MiniTool Partition Wizzard Free https://cdn2.minitool.com/?p=pw&e=pw-free
I am not associated with MiniTool in any way, however using this free software is by far more easy and convenient than typing commands, therefore anyone could apply the fix.
Simply select WInOS partition and decrese (resize/move - right click above the partition gives menu) it by minimum 250 MB (or larger) then move FAT partition to the left (if exists) and than again resize (increase) NTFS partition. Mini Tool will require restart to apply changes.
And Voila - it shoud work :)
Windows 10 KB5034441 Update Error 0x80070643 (need to manually resize partitions to fix the problem) https://www.youtube.com/watch?v=Wc0JkHYH_5o And the Microsoft support article: https://support.microsoft.com/en-us/topic/kb5028997-instructions-to-manually-resize-your-partition-to-install-the-winre-update-400faa27-9343-461c-ada9-24c8229763bf