Here is my post from earlier this month. You can try these things, and I believe they will resolve the error code. If you complete KB5028997 and then make sure reagentc is working you should get rid of error (0x80070643).
First, I was able to get all my Win 10 machines to accept this update with several steps completed. I agree with many others that this update does not seem to have any significant effect on operation or speed or anything that I can see.
You may want to open (from Windows) Disk Management by typing in the Search Bar "Create and Format Hard Disk Partitions" This should open the Disk Management plug-in. Look and see what you have on your OS drive - Usually Disk 0. You will need a larger Windows Recovery Partition (Win RE). One of a size of 800KB to 1024KB is needed. You can follow KB5028997 or the video https://www.youtube.com/watch?v=hlNtLcFqfOo (search on how to create a Windows Recovery Partition).
Here is the Windows directed response to increase the size of your Recovery Partition:
KB5028997: Instructions to manually resize your partition to install the WinRE update
Windows 10 Windows 10, version 1607, all editions More...
Summary
Microsoft has changed how it updates PCs that run the Windows Recovery Environment (WinRE). WinRE will be updated using the monthly cumulative update. This change only applies to PCs that get updates from Windows Update (WU) and Windows Server Update Services (WSUS). This change starts on June 27, 2023, for the Windows 11, version 22H2 cumulative update.
Some PCs might not have a recovery partition that is large enough to complete this update. Because of this, the update for WinRE might fail. You will receive the error message, "Windows Recovery Environment servicing failed.” To help you recover from this failure, this article provides instructions to manually resize your recovery partition if you get a system ErrorPhase of 2. This requires your device to have the recovery partition after the OS partition. Use the steps below to verify this.
Manually resize your partition by 250 MB
- Open a Command Prompt window (cmd) as admin.
- To check the WinRE status, run reagentc /info. If the WinRE is installed, there should be a “Windows RE location” with a path to the WinRE directory. An example is, “Windows RE location: [file://%3f/GLOBALROOT/device/harddisk0/partition4/Recovery/WindowsRE]\?\GLOBALROOT\device\harddisk0\partition4\Recovery\WindowsRE.” Here, the number after “harddisk” and “partition” is the index of the disk and partition WinRE is on.
- To disable the WinRE, run reagentc /disable
- Shrink the OS partition and prepare the disk for a new recovery partition.
- To shrink the OS, run diskpart
- Run list disk
- To select the OS disk, run sel disk<OS disk index> This should be the same disk index as WinRE.
- To check the partition under the OS disk and find the OS partition, run list part
- To select the OS partition, run sel part*<OS partition index>*
- Run shrink desired=250 minimum=250 (Added: See comments below on size)
- To select the WinRE partition, run sel part*<WinRE partition index>*
- To delete the WinRE partition, run delete partition override
- Create a new recovery partition.
- First, check if the disk partition style is a GUID Partition Table (GPT) or a Master Boot Record (MBR). To do that, run list disk. Check if there is an asterisk character (*) in the “Gpt” column. If there is an asterisk character (*), then the drive is GPT. Otherwise, the drive is MBR.
- If your disk is GPT, run create partition primary id=de94bba4-06d1-4d40-a16a-bfd50179d6ac followed by the command gpt attributes =0x8000000000000001
- If your disk is MBR, run create partition primary id=27
- To format the partition, run format quick fs=ntfs label=”Windows RE tools”
- To confirm that the WinRE partition is created, run list vol
- To exit from diskpart, run exit
- To re-enable WinRE, run reagentc /enable
- To confirm where WinRE is installed, run reagentc /info
Note If creation failed or you do not want to extend the WinRE partition, run reagentc /enable to re-enable WinRE.
"KB5028997: Instructions to manually resize your partition to install the WinRE update" is pretty good, and will give you some written directions.
Changes: I shrunk the OS (main) partition from its present size to a smaller size from (600 to1024KB) to allow for the increase of the Windows Recovery Partition. You will have to test your drive capability from Diskpart CMD to see what is allowed. Here is the quote from KB5028997: Run: shrink desired=250 minimum=250. You might not have this space available to change the amount to 600KB or 1024KB and have to go with a smaller shrink size, depending on your drive size and your OS Partition. You will need to do this first.
Next is to follow the directions in KB5028997 to delete and create your Windows Recovery Partition depending on your disk type MBR (older machines) or GPT newer UEFI machines. Follow the directions to create (specify) the Partition Primary ID,
Problem: I was unable to use the "Quick Format and Label commands for some reason. Came back with an error every time. I used: FORMAT fs=ntfs
IMPORTANT: Make sure you are still pointed at the RIGHT PARTITION in Volume 0 BEFORE you do this! - The new Partition you just made will likely be Partition 3 or 4 or 5, you do not want to FORMAT your OS Partition.
Note: If you want to label this partition you can or use the partial freeware: Mini Partition Wizard or AOMEI Partition Assistant if you want, it is not necessary, but might make you feel better. This part of the job is free, no need to buy the farm.
Follow the directions and check to see that you now have a Recovery Partition of the proper size, nice to have 800 to 1500KB if you have it available.
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Getting reagentc operating with needed files:
With my PC's that would not complete this update I found the reagentc was disabled, and had no recovery partition location present. I believe the loss of a Windows Recovery location starts with your PC updates to a new Hard Drive or from a HDD to an SSD upgrade.
It is required that you have a working reagentc or the Windows Update will not complete - hence the error we all have.
Check to see if it is active:
Run Command Prompt as administrator
Run: reagentc /info
See if the reagent is ENABLED (Active). If it is not, and there is no Recovery location shown, you will need to make one. There are some good videos on how to do this. This one is good and safe: https://www.youtube.com/watch?v=hlNtLcFqfOo
Follow the directions in this video exactly. You will need to change, or fix, or copy the needed files from another PC that has completed the update and has reagentc enabled.
In File Manager, Go to:
Windows > System32 > Recovery
As the youtube Video states, you will need to check (or change) the file settings to VIEW "Hidden Items" and then in Folder Options uncheck "Hide protected operating system files" to see all the files in this folder.
Note: You will be prompted with a warning not to do this, but do it anyway and bypass the warning. Then click Apply to Folders (or Apply). Hopefully this will then show the following required files in the directory above:
$PBR_Diskpart.txt
$PBR_ResetConfig.xml
Reagent.xml
Winre.wim
FYI: Doing all this fixed three Win 10 PCs I have that would never complete the Update.
The file that is likely missing is Winre.wim and that is the one you will need and must have. NOTE: If your reagentc is working and enabled you will NOT see this file. (I believe ever / never). If your reagentc is not enabled and active you should see this file.
If reagentc is not (enabled) working you will need to have these files to make it work. You will need to borrow them from a working machine with a Windows OS exactly like yours. Copy all the files from the working machine to a thumb drive. Copy the file(s) over to the location above.
IMPORTANT: It must be the same version of Windows 10 as is on your problem machine. Read comments on files below:
Example of my working machine that I borrowed the Winre.wim file from:
OS Name Microsoft Windows 10 Pro
Version 10.0.19045 Build 19045
Other OS Description Not Available
OS Manufacturer Microsoft Corporation
If you want to hide the system files and hidden files when you are done, then uncheck them so accidents do not happen.
Next, you may want EXIT out of CMD, File Manager and everything else.
Restart your PC.
Open up a CMD Window in Admin mode and run:
reagentc /info This should show if reagentc is working properly
See what happens, if it is not working then Run:
reagentc /enable
Verify it is now working with:
reagentc /info
The command should come back as "Operation Successful" and reagentc will be enabled. It is now working as it has found the Recovery files it needs from the file(s) you copied into Windows > System32 > Recovery
Now you can run the Windows Update. I believe it will take a few minutes to complete, but should not come back with the Red Error 0x80070643