I have exactly the same problem and the same error. My computer (HP EliteBook 8560w) has repeatedly failed this update (Feature update to Windows 10, version 1703) since 12 August 2017.
My current Windows 10 version is 1607 (OS Build 14393.1914).
Having tried the Windows Update troubleshooter that has detected and resolved exactly the same issues as those described by others in this discussion, I decided to contact Microsoft Support. To my surprise the
error codes did not assist. I went as far as accepting their full remote control access to my computer. They have attempted a clean install (leaving my personal apps and files in place) using their latest (July 2017) Windows.iso file.
The update failed twice and on both occasions at 28%!
The Microsoft (2nd level support person) told me that the only way forward would be to run a clean install thereby losing all of my applications and personal files!?
This sounds like advising that to survive one must commit suicide.
Surely there must be a better way to resolve this issue?