On a Windows 10 machine (version 1607) if you are unable to install update KB3200970 please try the following :-
1. Check windows update for KB3197954
2. Uninstall this update as this is the one that seems to cause the error – Reason: Checking the CBS.log file (located in c:\windows\logs\CBS) showed that Package 7 of KB3197954 was not installed.
3. Copy the following file on to a notepad and save the file as “Repair.Bat”
net stop wuauserv
ren Download Download.old
net start wuauserv
net stop bits
net start bits
net stop cryptsvc
ren catroot2 catroot2old
net start cryptsvc
4. Run this Repair.Bat as Administrator
5. Check if the c:\windows\system32\catroot2 has been renamed to c:\windows\system32\catroot2old
6. Copy “Catroot2” file folder from c:\windows\system32 from a working PC where the updates have been installed successfully.
7. Upon completing all the above reboot the PC.
8. Post Restart, Check for updates.
9. The updates should now download and install successfully.
The above information was found on a Microsoft forum and resolved the issue for one of our customers.