Yeah - this tripped me up too. Turns out that when you follow their instructions, the quick format re-assigns the partition ID. Since I'm using MBR, the quick format changed it from 27 (recovery partition) to 07 (ntfs partition). Because of this, reagentc couldn't find it - and I couldn't point it at the new partition either.
I had to use DISKPART to set the ID back to 27 after I quick formatted it. I imagine you'd have to do something similar if your drive is GPT, but I can't test it. After that, reagentc worked properly, the update installed correctly, and my system has been fine.