This error means you have downloaded files that are corrupted and you must reapply the update with fresh files.
Run cmd as admin and run the following commands:
net stop wuauserv
net stop cryptSvc
Ren C:\Windows\SoftwareDistribution SoftwareDistribution.old
Ren C:\Windows\System32\catroot2 Catroot2.old
net start wuauserv
net start cryptSvc
Then reboot the server and restart the update.
!If server is using BITS or MSI installer also stop them and start them after renaming the directories:
net stop bits
net stop msiservernet
start bitsnet
start msiserver