this workaround was posted on reddit (and fixed the issue for me!):
- Open the setupapi.dev.log log file from c:\windows\inf.
- Find the error "Failed to install device instance".
- Above this error it will say which inf file caused the issue. In my case oem90.inf
- Run "pnputil -d oem90.inf" from an elevated command prompt
- Re-run windows update and install
source: https://www.reddit.com/r/Surface/comments/4fkd0p/a\_botaload\_of\_new\_drivers\_incoming/d2a4ja1 and http://www.blackforce.co.uk/2016/04/20/surface-book-update-failed-intel-control-logic-0x800f0203