Update (Anniversary?) can't reboot; device missing

Windows 10 x64 build 10240 on an old HP Envy desktop. Every morning when I look at the computer it has a cyan screen saying:

Code:

Recovery
There was a problem with a device connected to your PC
An unexpected I/O error has occurred
Error code 0x000000e9

If I turn it off then on, it boots just fine. All other methods of rebooting work. Disconnecting all external drives makes no difference. SFC reports fixing corrupt files but doesn't help. Chkdsk c: /r/f doesn't help.

In the System Event log I find:

Level Date and Time Source Event ID Task CategoryInformation 2/28/2017 5:15:03 AM User32 1074 None "The process C:\Windows\system32\svchost.exe (DESKTOP-OJ4CM2D) has initiated the restart of computer DESKTOP-OJ4CM2D on behalf of user NT AUTHORITY\SYSTEM for the following reason: Operating System: Service pack (Planned) Reason Code: 0x80020010 Shutdown Type: restart Comment: "

Followed by messages about stuff shutting down, and a long hiatus until the stuff after my reboot shows up.

There's some other weirdness; many of my Start menu entries disappeared (all my Adobe stuff, Notepad++, Office365, ...) although the programs are still there. All the tiles I added to the Start menu have disappeared. All non-shortcuts have a large piece of paper icon where the arrow would be on a shortcut. When I search for a program and right-click on the result there's no "Pin to Start" or "Pin to Taskbar" entries.

??

If it were me, I would do a clean install of the latest build of Windows 10 - build 14393, version 1607. Bite the bullet, fix all the problems, get it ready for the Creator's Update coming in April.

I forgot to mention this is a pretty clean install, about a month old. I had a system disk failure, and both Carbonite Mirror Image and Easus ToDo backup failed to restore. Neither tech support could figure out why. Now I'm using Veritas Disaster Recovery.

I'm understandably not excited about doing it all again.

I ran Windows Repair AIO and this morning it's still up. But Windows Update says "Feature update to Windows 10, version 1607" is available.

You have errors that are preventing the update to version 1607 - which will also prevent updating to the Creator's Update coming in April. You are, in fact, two major updates behind now. That's why I recommend that you clean install version 1607 - not the original build 10240 that you have now. Clean install version 1607, get rid of all the errors, get up to date, and be ready for the Creator's Update in April.

Or continue on with a broken system.

Most members here prefer to use Macrium Reflect Free for backups. It's the most flexible and reliable backup imaging program we have found. And....it's free.

Once you get version 1607 installed, if it gets corrupted like your OS is now then you know to start looking at hardware problems.