I've got this same issue with Server 2025 - just one server out of several dozen, and it's not clear why this one only is affected.
It's normally updated through WSUS. As the update was failing, I disapplied the WSUS GPO and tried updating it direct from the Microsoft update servers. Same error. Tried clearing the update cach. Same error. Tried downloading the standalone installer. Yep, same error!
Also tried pausing and resuming updates - that doesn't work either!