Read the IMPORTANT section in the KB to resolve the issue:
IMPORTANT
This update requires 250 MB of free space in the recovery partition to install successfully. If the recovery partition does not have sufficient free space, this update will fail. In this case, you will receive the following error message:
0x80070643 - ERROR_INSTALL_FAILURE
To avoid this error or recover from this failure, please follow the Instructions to manually resize your partition to install the WinRE update and then try installing this update.
Or, to use a sample script to increase the size of the WinRE recovery partition, see Extend the Windows RE Partition.