Feito e o erro continua, quando fui pesquisar sobre essa KB, encontrei no site da Microsoft isso:
IMPORTANT
Some computers might not have a recovery partition that is large enough to complete this update. Because of this, the update for WinRE might fail. In this case, you will receive the following error message:
Windows Recovery Environment servicing failed.
(CBS_E_INSUFFICIENT_DISK_SPACE)
To help you recover from this failure, please follow Instructions to manually resize your partition to install the WinRE update.
Known issue Because of an issue in the error code handling routine, you might receive the following error message instead of the expected error message when there is insufficient disk space:
0x80070643 - ERROR_INSTALL_FAILURE
Acho que é um erro da KB