If you have seen issues with this update...check out this MSFT KB:
Also yhis article:
Manually resize your partition by 250 MB
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Open a Command Prompt window (cmd) as admin.
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To check the WinRE status, run reagentc /info. If the WinRE is installed, there should be a “Windows RE location” with a path to the WinRE directory. An example is, “Windows RE location: [file://%3f/GLOBALROOT/device/harddisk0/partition4/Recovery/WindowsRE]\\?\GLOBALROOT\device\harddisk0\partition4\Recovery\WindowsRE.” Here, the number after “harddisk” and “partition” is the index of the disk and partition WinRE is on.
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To disable the WinRE, run reagentc /disable
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Shrink the OS partition and prepare the disk for a new recovery partition.
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To shrink the OS, run diskpart
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Run list disk
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To select the OS disk, run sel disk<OS disk index> This should be the same disk index as WinRE.
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To check the partition under the OS disk and find the OS partition, run list part
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To select the OS partition, run sel part<OS partition index>
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Run shrink desired=250 minimum=250
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To select the WinRE partition, run sel part<WinRE partition index>
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To delete the WinRE partition, run delete partition override
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Create a new recovery partition.
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First, check if the disk partition style is a GUID Partition Table (GPT) or a Master Boot Record (MBR). To do that, run list disk. Check if there is an asterisk character (*) in the “Gpt” column. If there is an asterisk character (*), then the drive is GPT. Otherwise, the drive is MBR.
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If your disk is GPT, run create partition primary id=de94bba4-06d1-4d40-a16a-bfd50179d6acfollowed by the commandgpt attributes =0x8000000000000001
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If your disk is MBR, run create partition primary id=27
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To format the partition, run format quick fs=ntfs label=”Windows RE tools”
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To confirm that the WinRE partition is created, run list vol
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To exit from diskpart, run exit
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To re-enable WinRE, run reagentc /enable
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To confirm where WinRE is installed, run reagentc /info
Note If creation failed or you do not want to extend the WinRE partition, run reagentc /enable to re-enable WinRE.
The latest, Microsoft is working on a fix for this issue: