Brand new Asus laptop arrived yesterday with windows 10/64 v1511.

Set up with nothing unusual; installed adobe reader, java, chrome, and AVG (uninstalled McAfee first, & Teamviewer). Also installed Office Small Business 2007.

Ran updates, several went through okay, but then continually failed with the above error, the given option to "retry" just came back to the same issue. I tried the known trick of stopping the 3 usual services and removing the Software Distribution folder. But this didn't work either.

Uninstalling Office 2007, with a cold start resolved the problem, and the anniversary W10 update subsequently succeeded. Office reloaded later without an issue.

Moral: Issue with Office 2007 and the W10 anniversary update which requires the former to be uninstalled first.