I don't doubt there's an issue with this update, but all I can say is that one machine where I followed the resize procedure and disabled Bitlocker was able to install the update.
I know this is a small sample size but I think there's definitely something about the size of the recovery partition being insufficient.
If this is the problem, I'm not really sure how to fix it for machines where the partition layouts are different or where there's some other issue at play.
I have another computer where the partition layout parked the recovery partition at the head of the drive so expanding this partition would require a third-party disk manager.
We'll see if Microsoft can actually fix this update.