Server 2016 fails to install any cumulative update 0x8007002 - Driver issue

Question

Main: Server 2016 fails to install SEP or OCT cumu update with - "We couldn't complete the updates, undoing changes, don't turn off your computer" when restarting, it gets updates from a 2019 WSUS I run. All other servers received the same update with no issue, all are 2016s as well. I have ran through all the guides I get checking every error in event viewer and I now I am at the point where I am browsing through the CBS logs to see what it could be.

Restrictions:
This is on a private network with no internet access and I cannot put software on it or even take snippets of it to bring over to this workstation to upload logs or anything unfortunately so that's a pain.

What I have tried:
Resetting the registry
sfc and dism
Disconnected and reconnected to WSUS - unapproved and re-approved the update
Verified it didn't miss any SSUs
Tried installing the KB manually as well as previous months
Tried waiting a month from September to October but I get the same issue on both cumulative updates
Deleted/Rebuilt the SoftwareDistribution folder
Restarted the server (easy one)
Tried running in admin CMD after deleting from WSUS console(also ran equivilent command in Powershell as admin):
net stop bits
net stop wuauserv
reg delete "HKLM\SOFTWARE\Microsoft\Windows\CurrentVersion\WindowsUpdate" /v AccountDomainSid /f
reg delete "HKLM\SOFTWARE\Microsoft\Windows\CurrentVersion\WindowsUpdate" /v PingID /f
reg delete "HKLM\SOFTWARE\Microsoft\Windows\CurrentVersion\WindowsUpdate" /v SusClientId /f
reg delete "HKLM\SOFTWARE\Microsoft\Windows\CurrentVersion\WindowsUpdate" /v SusClientIDValidation /f
rd /s /q "%SystemRoot%\SoftwareDistribution"
net start bits
net start wuauserv
wuauclt /resetauthorization /detectnow
PowerShell.exe (New-Object -ComObject Microsoft.Update.AutoUpdate).DetectNow()

Now:
What I am currently looking at is c:windows\logs\cbs\cbs.log
It is stating:
Recording result: 0x80070002, for Inf: usbport.inf
DriverUpdateInstallUpdates failed [HRESULT = 0x80070002 - ERROR_FILE_NOT_FOUND]
Doqe: Failed installing driver updates [HRESULT = 0x8070002 - ERROR_FILE_NOT_FOUND]
Up to this point it appears to going through a list of "INSTALL index" about 150 other times for other inf files with no issue. Any ideas boys? Seems to be something related to the drivers, clearly. When I google this it appears other people deal with something closely related but not the same exact issue. So this is now where I reside beating my head against the wall

<Moved from Windows >

Answer 1

Hello

Thank you for posting in Microsoft Community forum!

The error code 0x80070002 usually indicates that the system cannot find the file specified. Here are some potential solutions:

Check for Updates Manually: Try to install the updates manually.

Disable Third-Party Security Software: Sometimes, third-party security software can interfere with the update process.

Perform a Clean Boot: A clean boot can help eliminate software conflicts.

Check the CBS Log: The CBS.log file can provide more information about the error.

Check the DRIVERS File: Navigate to C:\Windows\System32\config, right-click on the current DRIVERS file and select copy. If you get an error that the file is in use, reboot your computer and then try again.

Since there are no engineers dedicated to WSUS in this forum. in order to be able to get a quick and effective handling of your issue, I recommend that you repost your question in the Q&A forum, where there will be a dedicated engineer to give you a professional and effective reply.

Here is the link for Q&A forum.

Questions - Microsoft Q&A

Have a great day!

Best Regards,

Wesley Li