I've gotten to the bottom of this today with a little help from co-pilot. A bit of a pain. The update can't patch the winre.wim file, because it is in the recovery partition and protected. To apply the update, we need to copy the existing winre.wim file, into a temporary location on your hard drive, point the reagentc to the temporary file - do the windows update, then move everything back. Here's the instructions as from co-pilot (it's what worked on my system so bear in mind that partition locations etc may be different on your system)
KB5042320 installs with no issues at the same time as KB5068164
Fix for KB5068164 WinRE Update Failure (0x80070643)
Steps:
Mount the recovery partition with DiskPart
diskpart
list disk
select disk 0
list partition
select partition <number of recovery partition>
assign letter=R
exit
Create a temporary folder
mkdir C:\TempWinRE
Copy WinRE image to temp folder
robocopy R:\Recovery\WindowsRE C:\TempWinRE Winre.wim
Register WinRE to temp folder
reagentc /disable
reagentc /setreimage /path C:\TempWinRE
reagentc /enable
Run Windows Update
Install KB5068164 — it should now succeed.
Confirm WinRE version
dism /Get-WimInfo /WimFile:C:\Recovery\WindowsRE\Winre.wim /Index:1
Expect ServicePack Build 6455 (or newer).
Copy updated image back to recovery partition
robocopy C:\Recovery\WindowsRE R:\Recovery\WindowsRE Winre.wim
Re‑register WinRE to recovery partition
reagentc /disable
reagentc /setreimage /path R:\Recovery\WindowsRE
reagentc /enable
Remove temporary drive letter
diskpart
select volume R
remove letter=R
exit
Clean up temp folder
rmdir C:\TempWinRE
Result:
- WinRE status: Enabled
- Location: Recovery partition (GLOBALROOT device path)
- Version: ServicePack Build 6455
- KB5068164 installs successfully, no further failures.