Windows 10 Update Failure for 1703 and 1607

Creating a disk image of Windows.
As your disk is ok, and chkdsk passed, Macrium should be able to create a disk image. (It usually can't if the disk is failing/faulty).

Is SFC failing significant?
That SFC fails (comparing system files with a repository of system files) has nothing to do with whether it will be possible to create a disk image. From that point of view, your system files are just data. Whether the data is consistent or correct is not important to image creation.

Why create a disk image? So if something goes even more badly wrong you should always be able to get back to this point. That's why we constantly and repeatedly urge people to use disk imaging routinely- so they can often rescue themselves from bad situations quickly and without technical help. Even disk failure.

How do you create your first disk image of Windows?
Connect a sufficiently large USB disk (images are compressed- so your first is likely to be a bit more than half the used space you are imaging. Allow a lot more than that for other disks/partitions and differential images ('updates' - sort of). Note most videos and jpgs don't compress further.

Install and run Macrium Reflect.

Click Backup Windows. In the next window all relevant partitions should be selected.
Carry on to start the imaging process.

Once you have created the image, you are secure at that point.
You now have to
- make space on C: as I said earlier
(E.g. clean up (use Ccleaner; Properties + Disk cleanup; move personal data off C:)
- create 500Mb unallocated space on your disk
- fix your windows installation (this will be the tricky bit)
As SFC /SCANNOW doesn't work I recommend you do an in-place upgrade install which keeps all programs and data. However you will need to download an iso for build 1511 - or do you already have a boot disk or iso for that?

@zbook: I opted for an in-place upgrade repair as being an old installation, and the object is to upgrade it, trying DISM may well prove to be unsuccessful.

Also, I want to achieve the first two and demonstrate that has been done before trying to repair the system. And before trying to repair it, update the disk image. I.e. proceed in order, cautiously.

The CBS log shows that there was massive corruption.
I estimate it (SFC) made over 300 corrections, to Defender/NetFrameWork/VB/Mail/ PowerShell and others

Updates appear to failing as manifest files within them are also corrupt.
these will require specific user input as DISM, in any form WILL NOT correct them.

Roy

Thanks @hawkman

I don't think it will upgrade as it is for at least the 3 reasons I've stated:
a. insufficient space on C:
b. lack of unallocated space
c. corruption of the OS

a. and b. can hopefully be fixed (I'd like to see that done, and evidence, being relatively straightforward).

Then if necessary I was going to provide a source for the iso.
@zbook - I purposely did not provide a source for the iso so as to concentrate on a. and b. first- in order.
@zbook - this is now your thread. Good luck.