This update seems to be a real mess. It tries to install for since days and always stops at 38% and then rolls back. Instead of a reasonable error message it keeps retrying, rendering my laptop unusable for 30 min.
Best of luck, had that crop up occasionally with multiple updates as one offs across multiple machines. Sometimes all the typical troubleshooting steps (troubleshooter, clearing local update files, local repairs) won't fix it and your best option is to do a "upgrade" install with 'keep all files' selected using the media creation tool.
I went through the list that ChatGPT, Claude and Perplexity gave me. I can rule out the recovery partition and the update cache at least. I think one part was the windows sandbox feature which is known to make problems. Got a new error after deinstalling. It is just plain frustrating however. Having a PhD in computer science and looking for the needle in the haystack to just be able to use your PC in a reasonable way. If I did not have to use awkward SAP Excel Pluginsto connect to our accounting and other MS stuff, this episode nearly triggered me to finally switch to a decent OS I somehow can understand again.