Raju,
I was thinking about this route myself but it is a destructive method - in the Chose what to keep dialog, the 'keep personal files and apps' (and keep personal files only' are grayed out, only 'Nothing' ie destructive method is possible. The same if I boot from the installation media. So it seems that you cannot perform a non-destructive upgrade if the installed version and the installation media's version are identical.
I also tried with the equivalent offline installer (windows10.0-kb4592438-x64_b6914251264f8f973c3f82f99b894935f33c38e6.msu). It fails too - different error (0x8024200b) but probably related.
Unless someone has a different idea, I'll wait until next month for a new cumulative update (or a re-release as it seems several people have encountered the same issue). While not the first time I've encountered issues with Windows updates, it is the first where none of the otherwise proven troubleshooting measures seem to work.
Roland