Thanks to all that provided help.
Here's my learning of how I finally got 'You're Up to Date'
Hope this is not unique to me.
My $WinREAgent directory in C had 3 folders: Backup, Rollback and Scratch
Backup had boot.sdi, location.txt, ReAgent.xml and a winre.wim file (430,862 kb) I had extracted 6 months ago from a Win10 ISO dtd 5/5/23.
Rollback was empty.
Scratch had a file named update.wim (481,514 kb) and a folder named WimTempPath which was empty.
Windows/system32/Recovery had 2 files
ReAgent,xml and ReAgent_Merged.xml1
So, I took the chance that 'update.wim' was really a winre.wim file that needed to be renamed and relocated.
- In Windows/system32/Recovery, DELETED both files above.
- Copy and pasted in update.wim
- Renamed 'update.wim' to 'winre.wim' with Admin privileges
- Ran Windows Update which failed.
- In a Command Prompt with Admin privileges, ran reagentc /disable command (success)
- Ran Windows Update which now succeeded. Takes longer than failed attempts took.
- Reboot computer. I saw instruction 'restart' but I first shut down followed by a physical ON button start and next did a restart by command.
- In a Command Prompt with Admin privileges, ran reagentc /enable command (success)
Comment here: I would wait a bit between steps. MS seems to be doing a lot of reconfiguring at some points, creating new folders under $WinREAgent folder and then deleting them (or hiding them).
- Ran Windows Update which now succeeded under reagent enabled environment.