Hi Dhanushree R,
Manually extracting CAB files and trying to stitch the component store back together is a nightmare and rarely works for this specific extraction failure. The root cause is right at the bottom of your post: Trend Micro.
Placing Trend Micro in "maintenance mode" or "disabled" does not unload its anti-malware filter driver from the Windows kernel. During the update, this filter driver aggressively locks the temporary files, preventing TrustedInstaller from extracting the nested SSU cab files (hence the 0x80070002 - ERROR_FILE_NOT_FOUND). When Windows reboots and the kernel tries to access these missing binaries in the non-paged pool, it crashes with a BSOD 0x50.
Here is the clean, guaranteed way to get this update installed:
Recover the VM: If it is still caught in a BSOD loop, boot into Windows RE (Recovery Environment), open the command prompt, and run: dism /image:C:\ /cleanup-image /revertpendingactions
Remove the Blocker: Completely UNINSTALL Trend Micro from the VM. Do not just pause it. You must remove the filter driver entirely. (You can reinstall it after the update).
Purge the Corrupted Cache: Open an elevated CMD and run these exact commands to clear the broken payload:
-
net stop wuauserv -
net stop cryptSvc -
net stop bits -
net stop msiserver -
ren C:\Windows\SoftwareDistribution SoftwareDistribution.old -
ren C:\Windows\System32\catroot2 catroot2.old -
net start wuauserv(and start the other 3 services).
Without the antivirus filter driver interfering, the extraction will succeed and the VM will boot normally.
Tracy Le.