I had my updates paused, so nothing was downloaded or pending install. I did not turn off any of the virus protections running, or any extra steps like that.
I then checked the hard drive for errors as mentioned above...
- Open a CMD window as an administrator.
- Type or paste ‘chkdsk /f /r’ and hit Enter.
This said it couldn't run right no, but would do so automatically on the next re-boot.
Before rebooting, I downloaded and ran the utility found here...
https://www.microsoft.com/en-us/software-download/windows10
The install took under an hour and had no issues. It required one reboot.
Then I un-paused Windows Update and let all the mandatory updates download including our problem 20H2. Once everything was "pending install" I rebooted when prompted and waited for the usual failure message... BUT IT WORKED! Windows Update now has the "You're up to date" message and hopefully it stays that way for awhile!
There is still one update sitting in the "Optional quality update" list...
"2021-03 Cumulative Update for Windows 10 Version 20H2 for x64-based Systems (KB5001649)"
...But I'm not going to touch it!
Hopefully this solution works for others as well.