The USB method does not work. XBOX does not see an update on USB.
I have not tried with the CD.
What helped me is trying to install the same update next day for 11th time. It seems that the previous day it did not get the whole update file (the downloading phase was much faster than on a good day).
XBOX should consider improving the download recovery. It is integrated all over the place nowadays, so you rarely think it is a problem. Disappointing to stumble upon it in such a crucial stage of the leading software vendor equipment upgrade.
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