With the latest update for Windows 10, KB5034441, you may see the error: “0x80070643 – ERROR_INSTALL_FAILURE.”
Theoretically, the error should read “Windows Recovery Environment servicing failed.
(CBS_E_INSUFFICIENT_DISK_SPACE)” – but why make it easy on admins!? 
The update involves an update of the WinRE recovery partition, and to install it successfully, you need to (A) shrink the OS partition and (B) extend the WinRE recovery partition.
(QUITE annoying if you have +1,000 PCs that need this!!!)
To solve it, follow the official instructions from Microsoft:
As the steps involve shrinking the OS partition and deleting the existing WinRE recovery partition, you need to be SUPER careful when performing this change. You may blow up your system disk configuration otherwise.
To help you perform this change safely, please consider the following output from the complete operation when done successfully:
C:\WINDOWS\system32>reagentc /info
Windows Recovery Environment (Windows RE) and system reset configuration
Information:
Windows RE status: Enabled
Windows RE location: \\?\GLOBALROOT\device\harddisk1\partition3\Recovery\WindowsRE
Boot Configuration Data (BCD) identifier: a12e6738-b046-11ed-a838-ea6322889918
Recovery image location:
Recovery image index: 0
Custom image location:
Custom image index: 0
REAGENTC.EXE: Operation Successful.
C:\WINDOWS\system32>reagentc /disable
REAGENTC.EXE: Operation Successful.
C:\WINDOWS\system32>diskpart
Microsoft DiskPart version 10.0.19041.3636
Copyright (C) Microsoft Corporation.
On computer: DESKTOP-CDL9AOR
DISKPART> list disk
Disk ### Status Size Free Dyn Gpt
-------- ------------- ------- ------- --- ---
Disk 0 Online 1863 GB 0 B *
Disk 1 Online 1863 GB 1024 KB *
DISKPART> sel disk 1
Disk 1 is now the selected disk.
DISKPART> list part
Partition ### Type Size Offset
------------- ---------------- ------- -------
Partition 1 Reserved 16 MB 1024 KB
Partition 2 Primary 1862 GB 17 MB <- OS Partition
Partition 3 Recovery 516 MB 1862 GB <- WinRE Partition
(Shrink the OS partition)
DISKPART> sel part 2
Partition 2 is now the selected partition.
DISKPART> shrink desired=250 minimum=250
DiskPart successfully shrunk the volume by: 250 MB
(Delete and recreate the WinRE partition)
DISKPART> sel part 3
Partition 3 is now the selected partition.
DISKPART> delete partition override
DiskPart successfully deleted the selected partition.
DISKPART> list disk
Disk ### Status Size Free Dyn Gpt
-------- ------------- ------- ------- --- ---
Disk 0 Online 1863 GB 0 B *
* Disk 1 Online 1863 GB 767 MB *
DISKPART> create partition primary id=de94bba4-06d1-4d40-a16a-bfd50179d6ac
DiskPart succeeded in creating the specified partition.
DISKPART> gpt attributes =0x8000000000000001
DiskPart successfully assigned the attributes to the selected GPT partition.
DISKPART> format quick fs=ntfs label="Windows RE tools"
100 percent completed
DiskPart successfully formatted the volume.
DISKPART> list vol
Volume ### Ltr Label Fs Type Size Status Info
---------- --- ----------- ----- ---------- ------- --------- --------
Volume 0 D NTFS Partition 1862 GB Healthy
Volume 1 Recovery NTFS Partition 529 MB Healthy Hidden
Volume 2 FAT32 Partition 99 MB Healthy System
Volume 3 C NTFS Partition 1862 GB Healthy Boot
* Volume 5 Windows RE NTFS Partition 767 MB Healthy Hidden
DISKPART> exit
Leaving DiskPart...
C:\WINDOWS\system32>reagentc /enable
REAGENTC.EXE: Operation Successful.
C:\WINDOWS\system32>reagentc /info
Windows Recovery Environment (Windows RE) and system reset configuration
Information:
Windows RE status: Enabled
Windows RE location: \\?\GLOBALROOT\device\harddisk1\partition3\Recovery\WindowsRE
Boot Configuration Data (BCD) identifier: a12e673a-b046-11ed-a838-ea6322889918
Recovery image location:
Recovery image index: 0
Custom image location:
Custom image index: 0
REAGENTC.EXE: Operation Successful. Ensure proper system backup and perform the change at your own risk.
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