Open start and search for feedback and open the Feedback Hub app and report this issue and share the log files there.
I believe you already followed number of troubleshooting steps, but you may follow steps on:
https://support.microsoft.com/en-us/windows/troubleshoot-problems-updating-windows-188c2b0f-10a7-d72f-65b8-32d177eb136c
Windows Update Error 0x080070003
I've scoured the internet for results and I believe after running many CMD scans and restore health prompts that it comes down to this path error. I will attach all my scan logs in here. I have been unable to update windows and several other updates. I can't attach my DISM or CBS error docs because they are too large of files for the limited website upload. Please let me know if I can provide any more information to fix this, thank you!
CDISMPackageManager::Internal_Finalize(hr:0x80070003)
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Reza-Ameri 16,831 Reputation points
2022-09-23T16:47:05.73+00:00 -
S.Sengupta 15,111 Reputation points MVP
2022-09-25T00:31:20.337+00:00 Launch Command Prompt with admin rights.
Then run the commands below one by one (hit Enter after each one):
net stop wuauserv
net stop cryptSvc
net stop bits
net stop msiserver
Ren C:\Windows\SoftwareDistribution SoftwareDistribution.old
Ren C:\Windows\System32\catroot2 Catroot2.old
net start wuauserv
net start cryptSvc
net start bits
net start msiserver
Check for updates again.