Hello Nikhil Singhal,
Since this is happening on Windows 11 Insider Beta Build 26220.8754, I would treat it more as an Insider build feedback case than a normal Windows repair situation.
Beta is closer to release than Experimental, but it is still pre-release. Microsoft’s Insider notes also say features and experiences in Insider builds may change, be removed, or not release, and issues should be reported through the Feedback Hub (Win+F).
You already have useful Panther log details, like 0x80070057, TelCacheProvider::Initialize, and Plugin not registered [ETWMatchingPlugin]. These suggest the failure is happening during the Windows Update / setup configuration stage, rather than from a simple system file corruption. I would include those logs when submitting the report, so the Insider team can review the repair-install failure.