I have searched the error code 0x800f0982 with other languages on Google. While there is no official documentation from Microsoft, I see some people says that this error might happen if the some Windows components are removed in an unsupported way (e.g. "lite" version of Windows). For me this is the most reasonable explanation I can find, as I am using the LTSC version, not the bloated normal version. However I have never removed any component from Windows. Maybe Microsoft has not test the update enough.
Yesterday I contacted a Microsoft support engineer, he let me to do what I have done in the post again, couldn't identify the problem, and ended up suggesting me to perform a clean boot the try to install the update. Failed again with the same error code.
I won't waste any more time to deal with this broken update. Good luck Microsoft.