Windows 7 Update: Unable to update graphics driver

Fortunately you are not being asked to "try sfc /scannow and check if it helps", clean boot, Safe Mode or the Windows update Troubleshooter...

Here is some more details about what it all means and what to do about it:

If your system is working and you want it to keep working never accept hardware driver (video, audio, network, printer) updates from Windows Update.

Here's why:

If you mean you are seeing something like this:

That message is telling you that the driver update offered from Windows Update is an older or lesser version than the currently installed driver or has a lower compatibility rating than the installed driver.  That means you probably don't want that update and you should be glad the installation is failing.

It is generally not a good idea to accept hardware driver updates (video, audio, network, printer) offered by Windows Update and if you ever see them it is best to hide them so you never see them again.  Only get hardware driver updates from your hardware manufacturers WWW site.

Just because Microsoft offers you a driver update does not mean you have an out of date or afflicted driver and it certainly doesn't mean you have to install the driver updates MS offers - it is generally best NOT to install hardware driver updates offered by Microsoft.

Accepting hardware driver updates from Microsoft is one reason there are so many topics in the community that start with "Windows update broke my computer...".

One rule of thumb is "if it ain't broke don't fix it" so if you are not having a problem with hardware devices (video, audio, network, printer) don't accept or install those driver updates offered from Microsoft.  If you are having a problem like that you should only get driver updates from the hardware manufacturer.

If you see and can recognize those hardware driver updates offered you should right click and hide them:

Pretty soon you might have quite a few hidden hardware updates:

Windows has a way built in to not allow these kinds of updates and I'm not 100% sure it works as advertised but this is a safe adjustment that may prevent a whoops event in the future and how you might undo them if they happen:

Windows 7 has built in ways to disable driver updates from Windows Update that you can read about here:

https://support.microsoft.com/en-us/kb/2500967

Never allow Windows update to update drivers.  You have only two sources of driver updates that you should allow:

• The support web page for the OEM of your computer
• Intel's Driver update facility.

Further, drivers are different.  They should never be updated just because there is a newer update.  Update drivers only if you have a specific problem to resolve and then only update those specific updates.

In addition to the very good advice from ElderN, you should also turn off Recommended updates in your Windows update settings.  In Windows 7 that will prevent most driver update offers from Windows update.  (Unfortunately the same is not true for Windows 10.)