Exactly the same issue started to happen several hours ago. I did first two options you've recommended but that didn't help. Don't want to perform a repair-upgrade though. There is definitely something wrong with this KB5001716.
P.S.
* First, there was an update which installed correctly, it's listed in Windows Update Log as "KB5001716, 2024-03"
* Immediately after that, when I checked for updates again, there is another KB5001716 which fails to install.
* Now, my Windows Update Log contains another failed entry for the same KB - "KB5001716, 2023-10" at the top (note that it has older date), with error code 0x80070643