Interesting and I suppose mileage with this issue may vary. Microsoft obviously hadn't tested it fully or properly before releasing it to the masses.
On both my systems the update would only install after I had fully removed Malwarebytes, and then only after using the ISO to reinstall the Win 11 subsystem, and thereafter still having to manually install the offending update.
Microsoft really need to get their act together on these updates! This is now twice in short succession that I've encountered an update problem with a 2 hour completion time, and a Win 11 subsystem install the only fix to the the problem.
My laptop is a top of the range Dell 'XPS 15 9510' which is less than 6 months old and came standard with Win 11 Pro installed.
A move to a Mac is looking to be a good proposition.