I ran into this issue with my home Windows 10 installation. I was able to use the procedure here: https://support.microsoft.com/en-us/topic/kb5028997-instructions-to-manually-resize-your-partition-to-install-the-winre-update-400faa27-9343-461c-ada9-24c8229763bf to resize the partition.
However - when I got to Step 9 - the output of the "reagentc /info" command did not match the output of Step 2.
Original output:
Windows RE location: \?\GLOBALROOT\device\harddisk2\partition3\Recovery\WindowsRE
Subsequent output:
Windows RE location: \?\GLOBALROOT\device\harddisk2\partition2\Recovery\WindowsRE
Investigating further - I determined this was because my disk was a older drive using a Master Boot Record (MBR) partition table. After step 6 in the procedure, the quick format changed the ID from 27 (Windows Restore) to something like a 07 (Primary partition).
I needed to add an additional step - what I'm calling "5c"
5c. If your disk is MBR, run set id=27
Following the procedure now, the harddisk and partition numbers for Step 9 and Step 2 match - and I was able to complete the update successfully.
I don't know if this will help anyone else - and of course I can't guarantee anything for anyone who tries it - but it worked for me.
This worked well, and I could install the update without any problems afterward. Just be careful when selecting disks and partitions of course. In case you're not comfortable with doing this then I suggest using the Show & Hide Updates tool that another person with the name "NumskyHusky" mentioned here. I tried it as well at first and it hides this update in case that is enough for you now until Microsoft provides a better/easier solution.
The link that "NumskyHusky" provided for the Show & Hide Updates tool is: (just so that everything is in one answer) https://download.microsoft.com/download/f/2/2/f22d5fdb-59cd-4275-8c95-1be17bf70b21/wushowhide.diagcab