There is a folder called Panther, that holds the logs called setupact.log, and setuperr.log. The setupact.log should contain a run through log of the installation progress of the latest build install. If it fails, it will normally roll back to the last build and the user will not know why it failed. This Panther folder may hold the only answers to why the install failed. The Setuperr.log should just display the last error in the install process, which may help diagnose exactly why the installation of the latest build failed. However, most likely you want to read the setupact.log.
I have notified Microsoft about this issue and it is being investigated internally. They have kept it pretty quiet so far, but I am sure there will be a response eventually. In case anyone doesn’t know what the problem is, it goes like this… After a Windows 8 Pro computer with Microsoft Office 2010 32 bit installed, the Windows Update from March 2013 KB2760600 is attempted and the user is asked to reboot. Upon rebooting, all other updates install smoothly, yet there is one last update that refuses to install and reboot the computer. The screen looks like this:. In fact, this has happened everytime I reboot my computer even after hiding the update, and if I check installed updates, this update is listed as installed, but I know this is the problem, because if I unhide the update and check for updates again, this is the only update that shows up.
Some users on the Microsoft Community forum have suggested that turning off the Print Spooler Service has fixed this problem for them, unfortunately this has not eradicated the problem on my system. (I have tried it twice). Now my system may not be normal because I have Microsoft Office Home Premium 2013 also installed alongside Office 2010, but this should not be an issue. I have not had much time to really dive into this problem yet, as I am currently enrolled in WGU and have been spending all my time studying for exams and trying to swiftly move along in my studies.
Here are some links that reference people also having this problem…
If any of the solutions here work for you, then you are lucky. I have tried them all and everytime I reboot I have to forcefully shutdown the computer again. Anyway, hopefully this may be answered on a future episode of Defrag on Microsoft’s Ch.9 since I have forwarded the issue to Gov Maharaj and Larry Larsen.
EDIT: Apparently, it has come to light that many of the people reporting this issue actually have HP printers installed. I have not confirmed this yet, but some people have said that they uninstalled their HP Printers / HP software and then the update installed. Updates will come as soon as we verify this after testing.