Forget screwing around with Windows Update. If you are a windows insider just go the windows insider page, login, and then download. Click on the media creation tool -- it's really the actual download. It will then create the BT Folder (or overwrite your existing one) and then automatically do the update.
Remember to the UPDATE and not clean install. MIcrosoft said to update and then go back and create installation media and do the clean install.
Good luck and Good night!!! I live in Colorado, so I was able to download the files before midnight my time.
What? what do you mean clean install?
Like I already posted, these steps got Windows 10 to start properly installing for me:
What this error means is, your Windows 10 installation folder is unfinished and/or corrupted. Now, how do you fix that?
1. Go into "C:\Windows\SoftwareDistribution\Download" and delete everything in that folder.
2. Now, run the command prompt as an administrator. Type in "wuauclt.exe /updatenow".
3. Go to your Control Panel > Windows Update and your Windows 10 should start re-downloading from scratch, hopefully without flaws this time