Exactly the same problem of this update getting automatically reinstalled in spite of updates paused... I actually managed to uninstall it once but it came back the next day and since then, the uninstallation is apparently impossible as it starts normally but then crashes. No problem with files disappearing, but in my case, it seems that the update creates some "small lags" (I don't know how to call that, the computer seems to have "hick ups" in spite of all the parameters being normal). It affects everything from the mouse jumping a bit every 3-4 seconds to videos having some mini-stops at the same frequency. It was resolved when I managed to remove that update but came back with it and it appears impossible to remove now.
If somebody has a recipe to remove an update when the "unistall option" crashes, I would be so grateful!!
wusa /uninstall /kb:4532693 /quiet