So, i've resolved the issue and successfully installed Windows 10, version 20H2.
In case it helps other users, here's what i did to resolve:
So, what has become clear in my case is that the log files in C:$Windows.~BT\Sources\Panther folder (files, setuperr.log and setupact.log) together with the rollback log files in C:$Windows.~BT\Sources\Rollback (files, Setupact.log and Setuperr.log) provide key clues to resolving issues like this. In my case, i saw some reference (I think in one of the rollback logs) to there being an issue with this file file located here: C:\Users[username]\Application Data\Microsoft\Forms\OUTLOOK.BOX
From the log files i could see that the windows update quickly aborted / rolled back after being unable to update / some setting related to this file. I deleted this file and incredibly the Windows 10 update installed without any issues.
Hope this helps other users.