"Ren C:\Windows\System32\catroot2 Catroot2.old"
Not sure if this works anymore, I'm having the same issue with 2021-06 but for Windows 10 (KB5003637).
I tried these steps you have listed here earlier but when trying to rename catroot2 I cannot do this.
Due to files in use by cryptsvc, even if I set cryptsvc to disabled, when I try to rename cartroot2 it just re-enables cryptsvc and starts the service up again.
I did get SoftwareDistribution renamed and a fresh one going, but not a fix the same issue persists.
And my issue is the exact same with the thread creator, after installing and going to pending restart status, a reboot just forces a second reboot after the install leading to:
"WE COULDN'T COMPLETE THE UPDATES UNDOING CHANGES DON'T TURN OFF YOUR COMPUTER"
Really annoying cause I'm stuck in a constant cycle of updates downloading in the background and then my computer wanting to reboot to every 15 minutes so it can install an update that it will rollback on boot, then repeat.