Below is the log that recorded when the update failed. I am stumped - almost every line in the log speaks of error or a some kind of failure. Any ideas?
3.797: 2015/04/16 16:03:06.056 (local)
3.797: C:\WINDOWS\SoftwareDistribution\Download\797c7ab2f9a6717678b1b6d4e83ebefa\update\update.exe (version 6.3.4.1)
3.797: Failed To Enable SE_SHUTDOWN_PRIVILEGE
3.797: Hotfix started with following command line: -q -z -er /ParentInfo:dbe40bb0bc874746a23ef23af87b3aec
3.797: In Function GetBuildType, line 1170, RegQueryValueEx failed with error 0x2
3.797: SOFTWARE\Microsoft\NET Framework Setup\NDP\v1.1.4322\SP is Equal To Specified Value
3.797: Condition succeeded for section SP1QFE.SP1Check.Section in Line 1 of PreRequisite
4.469: In Function TestVolatileFlag, line 12013, RegOpenKeyEx failed with error 0x2
4.469: In Function TestVolatileFlag, line 12045, RegOpenKeyEx failed with error 0x2
4.469: DoInstallation: CleanPFR failed: 0x2
4.469: In Function GetBuildType, line 1170, RegQueryValueEx failed with error 0x2
4.469: SetProductTypes: InfProductBuildType=BuildType.Sel
4.469: SetAltOsLoaderPath: No section uses DirId 65701; done.
4.500: DoInstallation: FetchSourceURL for c:\windows\softwaredistribution\download\797c7ab2f9a6717678b1b6d4e83ebefa\update\update_SP2QFE.inf failed
4.500: CreateUninstall = 1,Directory = C:\WINDOWS\$NtUninstallKB3037572$
4.500: LoadFileQueues: UpdSpGetSourceFileLocation for halaacpi.dll failed: 0xe0000102
4.500: BuildCabinetManifest: update.url absent
4.500: Starting AnalyzeComponents
4.500: AnalyzePhaseZero used 0 ticks
4.500: OEM file scan used 0 ticks
4.735: AnalyzePhaseOne: used 235 ticks
4.735: AnalyzeComponents: Hotpatch analysis disabled; skipping.
4.735: AnalyzeComponents: Hotpatching is disabled.
4.735: FindFirstFile c:\windows\$hf_mig$\*.*
7.219: AnalyzeForBranching used 31 ticks.
7.219: AnalyzePhaseTwo used 0 ticks
7.219: AnalyzePhaseThree used 0 ticks
7.219: AnalyzePhaseFive used 0 ticks
7.219: AnalyzePhaseSix used 0 ticks
7.219: AnalyzeComponents used 2719 ticks
7.219: Downloading 0 files
7.219: bPatchMode = FALSE
7.219: Inventory complete: ReturnStatus=0, 2719 ticks
7.219: Num Ticks for invent : 2719
7.235: VerifyTargetFileSize: Unable to verify size as Source = NULL for file c:\windows\inf\HFX1A.tmp
7.235: Copied file: c:\windows\inf\branches.inf
9.953: Allocation size of drive C: is 4096 bytes, free space = 11049664512 bytes
9.969: AnalyzeDiskUsage: Skipping EstimateDiskUsageForUninstall.
9.969: Drive C: free 10537MB req: 5MB w/uninstall: NOT CALCULATED.
9.969: CabinetBuild complete
9.969: Num Ticks for Cabinet build : 2750
9.969: DynamicStrings section not defined or empty.
9.969: FileInUse:: Detection disabled.
10.969: LoadFileQueues: UpdSpGetSourceFileLocation for halaacpi.dll failed: 0xe0000102
11.047: Num Ticks for Backup : 1078
11.110: Num Ticks for creating uninst inf : 63
11.125: Registering Uninstall Program for -> KB3037572, KB3037572 , 0x0
11.125: LoadFileQueues: UpdSpGetSourceFileLocation for halaacpi.dll failed: 0xe0000102
11.157: PFE2: Not avoiding Per File Exceptions.
11.172: GetCatVersion: Failed to retrieve version information from C:\WINDOWS\system32\CatRoot\{F750E6C3-38EE-11D1-85E5-00C04FC295EE}\KB3037572.cat with error 0x57
11.250: Copied file: C:\WINDOWS\microsoft.net\framework\v1.1.4322\system.web.mobile.dll
11.422: Copied file: C:\WINDOWS\microsoft.net\framework\v1.1.4322\system.web.dll
11.516: Copied file: C:\WINDOWS\microsoft.net\framework\v1.1.4322\aspnet_wp.exe
11.688: Copied file: C:\WINDOWS\microsoft.net\framework\v1.1.4322\aspnet_isapi.dll
11.844: Copied file: C:\WINDOWS\microsoft.net\framework\v1.1.4322\aspnet_filter.dll
11.891: Copied file: C:\WINDOWS\system32\DllCache\system.web.mobile.dll
11.953: Copied file: C:\WINDOWS\system32\DllCache\system.web.dll
12.032: Copied file: C:\WINDOWS\system32\DllCache\aspnet_wp.exe
12.094: Copied file: C:\WINDOWS\system32\DllCache\aspnet_isapi.dll
12.141: Copied file: C:\WINDOWS\system32\DllCache\aspnet_filter.dll
12.172: DoInstallation: Installing assemblies with source root path: c:\windows\softwaredistribution\download\797c7ab2f9a6717678b1b6d4e83ebefa\
12.172: Num Ticks for Copying files : 1062
12.203: Num Ticks for Reg update and deleting 0 size files : 31
12.203: DoInstallation: ApplyAdminSystemAclsRecursive for c:\windows\$hf_mig$\KB3037572 failed; error=0x00000003
12.203: Starting process: C:\WINDOWS\Microsoft.NET\Framework\v1.1.4322\ToGac.exe C:\WINDOWS\Microsoft.NET\Framework\v1.1.4322\System.Web.dll
12.594: Return Code = 1
12.594: DoInstallation:RunInfProcesses for ProcessesToRun Failed
12.594: KB3037572 Setup encountered an error: An error in updating your system has occurred.
12.610: An error in updating your system has occurred.
Select 'OK' to undo the changes that have been made.
12.610: Starting process: C:\WINDOWS\$NtUninstallKB3037572$\spuninst\spuninst.exe /~ -q -z
45.797: Software Update Rollback has completed successfully. The original error message was: 0x1
3.015: ================================================================================
Matt McGlone