FINALLY! After trying to innstall this update with nothing but failure since November - it seems like the last try succeeded. Gave up actively trying to fix the issue mid January. Paused automatic updates for 3-5 weeks and waited for the retry to fail once a month after that. But today - it works. Low and behold..
Think I might have to do a little celebration dance later today. Never thought this day would come.
Well done. Probably Microsoft updated a pesky driver that was causing the issue.