I had this problem on 3 PC's and so far I've fixed 2 by following the procedure in KB5028997. However I resized the WinRE partition to ~950MB from 563MB as after increasing it by 250MB it still failed. Also 1 PC had a partition style of GPT and the procedure worked perfectly, however 2 others have MBR style and this gave rise to another problem.
After re-enabling WinRE with the new partition created it seems to be pointing to the wrong partition i.e. I now have reagentc /info returning:
Windows RE status: Enabled
Windows RE location: \?\GLOBALROOT\device\harddisk1*partition2\Recovery\WindowsRE*
Boot Configuration Data (BCD) identifier: 503ab989-affc-11ee-b443-50e549b23526
Whereas before it was \?\GLOBALROOT\device\harddisk1*partition3\Recovery\WindowsRE*
and partition 3 is where LIST PART displays the "Windows RE tools".
I've now found the solution to this. It seems that the command
create partition primary id=27
doesn't assign id 27 although it does create the partition and name it. I found the id was 7. So there are 2 commands to help with this:
detail part - shows the currently selected partition details e.g. 7 instead of 27
set id=27 - this works!
detail part - should show correct id
After re-enabling reagentc I got the correct partition assigned!
So in my experience the KB5028997 procedure solves the KB5034441 installation failure in Windows 10 provided the above 2 amendments are included. The only scenario not covered is where there is another partition between the OS and WinRE ones.
Hopefully MS are working on a proper fix for this as having a major Windows security flaw permitting Bitlocker encrypted file access renders it useless. On the other hand anyone caught by a ransomware attack has a solution to recover their system without paying the hackers!!! :p