Windows Updates cannot be setup

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K19X

OS: Win Server 2016 Datacenter

Updates can downloaded and installed (automatic+manual). Then server requires a restart. On system start Windows sets up the system. When finished, it says "Updates cannot be setup" and a rollback process starts (overall it takes 1-2 hours). This is an endless loop since after rollback Windows recognizes the updates again as to be downloaded/installed.

Install works in manual and automatic mode, but in both cases the update cannot be set up during restart.

Necessary Services are running, Windows Update Problem Treatment has been performed, Clean Shutdown and Resetting SW Distribution Folder did not solve the problem.

I cannot find the actual root source of the problem, not in event log, not in Windows Update log (from PowerShell)

Concrete Questions: Where exactly is the actual problem logged such that I can identify the source? Currently looking for the needle in the haystack (since it can be anything).

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