This solution with temporary relocation of WinRE to system partition does not work for me. It also does not locate recovery partition automatically after I removed and re-created it - I get the RE image was not found. I don't find winre.wim in %windir%\system32\recovery, it is in C:$ReAgent\Scratch under the name update.wim. I need to manually copy it to the recovery partition location recovery\windowsre and then do reagentc /setreimage path to there so that I could successfully enable RE environment.
But it does not help with this 0x80070643 error. Every time I attempt the update it moves winre.wim from %windir%\system32\recovery to C:$ReAgent\Scratch\update.wim.
My system is HP laptop survived upgrade from Windows 8.1. Initial recovery partition on it was located at the very beginning on the disk. I was unable to expand it as diskpart can shrink only to left so I just removed it and created a new recovery partition sized 996MB after the main boot partition.
Any suggestions are appreciated.