You might see above error, when you try to install an update downloaded manually from the Microsoft Download Center or when you enable Automatic Updates.
Last time this happened to me, when I tried to install the update that I've manually downloaded from the Microsoft Download Center. Here is the solution to fix it.
1. Take Run (Win + R) –> type Services.msc
2. Make sure that BITS (Background Intelligent Transfer Service) is running.
3. Make sure that your Windows Update service is running.
Try to install the update again. If problem persists, restart both the service and you're done.