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An upgrade of Windows has fixed this update failure.
If you choose to run the DISM commands they may or may not fix the update failure.
When using the Microsoft media creation tool it is in esd format (not wim).
Other iso download websites are typically in wim format.
The command that is used depends upon the source file: (esd vs wim)
See option #2 section #7
Use DISM to Repair Windows 10 Image