I have the identical problem and am running Windows XP Pro SP3
I tried to update from 17.0.0.124 to 17.0.0.144
Standard update (double click installer) - the update failed (as described by OP)
When msiexec was not running - the update failed
When msiexec.exe was running - and then killed - the update failed
I uninstalled 17.0.0.124 via Control Panel - and then installed 17.0.0.144
- the installer worked as expected this time
I restarted the PC - and everything was back to normal!
Good luck