Hi,
Sorry but am not able to reproduce this problem at my end but as per logs also it seems to be a msi issue.
Since its not reproducing for me so can you please follow the below steps and check it again ?
1. On the Start menu (Windows), click Run
2. Enter msiexec /unregister, and then click OK.
3. On the Start menu (Windows), click Run
4. Enter msiexec /regserver, and then click OK.
5. Clear your temp directory.
6. Try to update again.
It will re-register your msi service and it can resolve many msi related. Hope it solves your problem.
-Varun