PENDING 0x800f8016 error when installing Windows 11 in-place upgrade over Task Sequence

[CTM]

I have created a very barebones task sequence to run an in-place upgrade to Windows 11. It uses the "Upgrade operating system" step and its installing the monthly Win 11 upgrade feature update (This month's is KB5055523 Windows 11, version 24H2 x64 2025-04B). The task sequence keeps failing with errors 0x80004005 and 0x800f8016 depending on the log file.

The weird part is, if I deploy the update on its own without the task sequence, it works with no issue. However we need to use a task sequence due to a separate issue with the Windows 11 upgrade removing the PC's 802.1x settings and leaving it unable to authenticate.

Here is the task sequence, all it does is install the feature update, reboot, then install the package which is a simple command line + xml file that contains the aforementioned 802.1x settings.



And here are some relevant log outputs with errors. Let me know if any other log files are needed.

smsts.log:

Installation of updates started. For troubleshooting, please refer to logs: UpdatesDeployment.log, UpdatesHandler.log, UpdatesStore.log, wuahandler.log, WindowsUpdate.log InstallSWUpdate 4/11/2025 9:06:25 AM 1432 (0x0598)
Waiting for installation job to complete InstallSWUpdate 4/11/2025 9:06:25 AM 1432 (0x0598)
Waiting for job status notification ... InstallSWUpdate 4/11/2025 9:07:25 AM 1432 (0x0598)
Waiting for job status notification ... InstallSWUpdate 4/11/2025 9:08:25 AM 1432 (0x0598)
Waiting for job status notification ... InstallSWUpdate 4/11/2025 9:09:25 AM 1432 (0x0598)
Waiting for job status notification ... InstallSWUpdate 4/11/2025 9:10:25 AM 1432 (0x0598)
NotifyComplete received InstallSWUpdates 4/11/2025 9:10:42 AM 9168 (0x23D0)
Update with CIID Site_B2339583-9DFB-4096-B170-EB686153CBD0/SUM_bd9a1b45-d3f1-4cad-8eac-1fe81cbf9fc1 failed with hr = 0x800f8016 InstallSWUpdates 4/11/2025 9:10:42 AM 9168 (0x23D0)
Received job completion notification from Updates Deployment Agent InstallSWUpdate 4/11/2025 9:10:42 AM 1432 (0x0598)
One or more updates failed to install, hr=0x80004005 InstallSWUpdate 4/11/2025 9:10:42 AM 1432 (0x0598)
InstallUpdates(pInstallUpdate, tType, sIdStr, sCallerStr, sJobID, sActiveRequestHandle), HRESULT=80004005 (main.cpp,308) InstallSWUpdate 4/11/2025 9:10:42 AM 1432 (0x0598)
Setting TSEnv variable SMSTSInstallUpdateJobGUID= InstallSWUpdate 4/11/2025 9:10:42 AM 1432 (0x0598)
Process(pInstallUpdate, tType, sIdStr, sCallerStr, sPendingRebootUpdateIDs), HRESULT=80004005 (main.cpp,409) InstallSWUpdate 4/11/2025 9:10:42 AM 1432 (0x0598)
Process completed with exit code 2147500037 OSDUpgradeWindows 4/11/2025 9:10:42 AM 8872 (0x22A8)
Upgrade with Feature Update return with- hexadecimal 0x80004005 (decimal 2147500037) - Save to Task sequence environment variable '_SMSTSOSUpgradeActionReturnCode', as decimal string OSDUpgradeWindows 4/11/2025 9:10:42 AM 8872 (0x22A8)
Upgrade with Windows Update failed with exit code 0x80004005. OSDUpgradeWindows 4/11/2025 9:10:42 AM 8872 (0x22A8)
Failing this task sequence step OSDUpgradeWindows 4/11/2025 9:10:42 AM 8872 (0x22A8)
Exiting with code 0x80004005 OSDUpgradeWindows 4/11/2025 9:10:42 AM 8872 (0x22A8)
Process completed with exit code 2147500037 TSManager 4/11/2025 9:10:42 AM 2200 (0x0898)
!--------------------------------------------------------------------------------------------! TSManager 4/11/2025 9:10:42 AM 2200 (0x0898)
Failed to run the action: Upgrade Operating System. Error -2147467259 TSManager 4/11/2025 9:10:42 AM 2200 (0x0898)

UpdatesHandler.log

spWUAHandler2->InstallUpdates( dwUpdateCount, pUpdates, spInstallProgress ), HRESULT=800f8016 (wsusupdatehandler.cpp,129) UpdatesHandler 4/11/2025 9:10:42 AM 6052 (0x17A4)
Failed to initiate install of WSUS updates, error = 0x800f8016 UpdatesHandler 4/11/2025 9:10:42 AM 6052 (0x17A4)
__hrMethodRetVal, HRESULT=800f8016 (wsusupdatehandler.cpp,135) UpdatesHandler 4/11/2025 9:10:42 AM 6052 (0x17A4)
spWSUSUpdateHandler->Start( oExecuteInfo, dwMaxExecutionTime, sExecutionID ), HRESULT=800f8016 (update.cpp,1235) UpdatesHandler 4/11/2025 9:10:42 AM 6052 (0x17A4)
Failed to start WSUSUpdate, error = 0x800f8016 UpdatesHandler 4/11/2025 9:10:42 AM 6052 (0x17A4)
RunWSUSUpdate( eAction ), HRESULT=800f8016 (bundledupdate.cpp,1273) UpdatesHandler 4/11/2025 9:10:42 AM 6052 (0x17A4)
Bundle update (bd9a1b45-d3f1-4cad-8eac-1fe81cbf9fc1) internal state transition: RUNNING to COMPLETE_FAILED UpdatesHandler 4/11/2025 9:10:42 AM 6052 (0x17A4)
CUpdate::ReleaseContentRequest - called for GUID {B1F8B728-F3FD-474F-947F-8DF337B983A9} UpdatesHandler 4/11/2025 9:10:42 AM 6052 (0x17A4)
CUpdate::ReleaseContentRequest - Calling CAS::ReleaseRequest for GUID {B1F8B728-F3FD-474F-947F-8DF337B983A9} UpdatesHandler 4/11/2025 9:10:42 AM 6052 (0x17A4)
CUpdate::ReleaseContentRequest - called for GUID {44B718BA-1C1E-4EB3-83FF-6B9C4FBBD523} UpdatesHandler 4/11/2025 9:10:42 AM 6052 (0x17A4)
CUpdate::ReleaseContentRequest - Calling CAS::ReleaseRequest for GUID {44B718BA-1C1E-4EB3-83FF-6B9C4FBBD523} UpdatesHandler 4/11/2025 9:10:42 AM 6052 (0x17A4)
CDeploymentJob -- Failed to start procesing of the update (bd9a1b45-d3f1-4cad-8eac-1fe81cbf9fc1). Error = 0x800f8016 UpdatesHandler 4/11/2025 9:10:42 AM 6052 (0x17A4)

 

[GarfieldGamer]

I'm experiencing the exact same issue even down to the need for the task sequence due to our 802.1x policies. I've had no issues with sending out the latest 0xB monthly Feature Update through the standard update deployment method, but as soon as I insert it into a task sequence it fails.

I've also tried the option of using the OS Upgrade Package based off the 24H2 ISO source files as opposed to the Feature Update and get similar if not the same errors. I've trimmed the Task Sequence down to just the upgrade task and a reboot right after and still have the same issues.

Did you ever find a fix for this or did you go with a different method to upgrade?