KB3033395 installs but AU client doesn't recognize it

Question

Has anyone encountered a problem with KB3033395?
I'm testing this month's Patch Tuesday release, and my test Server 2003 machine has 11 updates to install. 10 of them install just fine, actually all 11 install just fine.  
#11 is KB3033395. This appears in the control panel and its files are correct.
But the AU client still regards KB3033395 as "needed", and of course it reports that back to the WSUS server.  
I've tried:
Just let it install again. 
I reverted to a previous snapshot and the behavior repeats itself. 
Fixit 50123 does not resolve the issue. 
Restarts do not resolve the issue.
The closest thing to an abnormal message is in WindowsUpdate.log, which says at the first successful installation that the update requires a restart, but with subsequent installations it says a restart is not needed.  
(Update, March 17: We certainly have enough "me too"s, everyone, and since the issue doesn't affect WSUS directly, more of them won't help.  Suggestions for making the update stick would be welcome, but I think that we just have
to wait for Microsoft to replace the update or migrate away from Server 2003).

Answer 1

This is what the log file for kb3033395 says after manual installation of this
[KB3033395.log]
0.406: ================================================================================
0.406: 2015/03/13 07:48:41.877 (local)
0.406: c:\16fcd18f02f16ad15ad4d58777788f\update\update.exe (version 6.3.4.1)
0.406: Hotfix started with following command line:
0.406: In Function GetBuildType, line 1170, RegQueryValueEx failed with error 0x2
0.750: In Function TestVolatileFlag, line 12013, RegOpenKeyEx failed with error 0x2
0.750: In Function TestVolatileFlag, line 12045, RegOpenKeyEx failed with error 0x2
0.750: DoInstallation: CleanPFR failed: 0x2
0.750: In Function GetBuildType, line 1170, RegQueryValueEx failed with error 0x2
0.750: SetProductTypes: InfProductBuildType=BuildType.Sel
0.750: SetAltOsLoaderPath: No section uses DirId 65701; done.
0.765: DoInstallation: FetchSourceURL for c:\16fcd18f02f16ad15ad4d58777788f\update\update_SP2QFE.inf failed
0.765: LoadFileQueues: UpdSpGetSourceFileLocation for halaacpi.dll failed: 0xe0000102
0.765: BuildCabinetManifest: update.url absent
0.765: Starting AnalyzeComponents
0.765: AnalyzePhaseZero used 0 ticks
0.765: SetupFindFirstLine in LoadExclusionList Failed with error: 0xe0000102
0.765: SetupFindFirstLine in LoadExclusionList Failed with error: 0xe0000102
0.765: Enumerating Devices of computer, GUID {4d36e966-e325-11ce-bfc1-08002be10318}
0.859: OEM file scan used 94 ticks
0.937: AnalyzePhaseOne: used 172 ticks
0.937: AnalyzeComponents: Hotpatch analysis disabled; skipping.
0.937: AnalyzeComponents: Hotpatching is disabled.
0.937: FindFirstFile c:\windows\$hf_mig$\*.*
0.953: KB3033395 Setup encountered an error:  The  update.ver file is not correct.
1.093: AnalyzeForBranching used 0 ticks.
1.093: AnalyzePhaseTwo used 0 ticks
1.093: AnalyzePhaseThree used 0 ticks
1.093: AnalyzePhaseFive used 0 ticks
1.093: AnalyzePhaseSix used 0 ticks
2.546: AnalyzeComponents used 1781 ticks
2.546: Downloading 0 files
2.546: bPatchMode = FALSE
2.546: Inventory complete: ReturnStatus=0, 1781 ticks
7.531: CreateUninstall = 0,Directory = C:\WINDOWS\$NtUninstallKB3033395$
7.531: Num Ticks for invent : 6766
7.531: VerifyTargetFileSize: Unable to verify size as Source = NULL for file c:\windows\inf\HFX13.tmp
7.531: Copied file:  c:\windows\inf\branches.inf
7.796: Allocation size of drive C: is 4096 bytes, free space = 12821553152 bytes
7.796: Drive C: free 12227MB req: 5MB w/uninstall 0MB
7.796: CabinetBuild complete
7.796: Num Ticks for Cabinet build : 265
7.796: DynamicStrings section not defined or empty.
7.796: FileInUse:: Detection disabled.
8.796: LoadFileQueues: UpdSpGetSourceFileLocation for halaacpi.dll failed: 0xe0000102
8.828: PFE2: Not avoiding Per File Exceptions.
8.921: DoInstallation: Installing assemblies with source root path: c:\16fcd18f02f16ad15ad4d58777788f\
8.921: Num Ticks for Copying files : 1125
8.921:  ;%systemroot%\system32\ws03res.dll;%systemroot%\system32\w03a2409.dll found in EventMessageFile of Product.Append.Reg.IA
8.921: Num Ticks for Reg update and deleting 0 size files : 0                          
8.921: DoInstallation: ApplyAdminSystemAclsRecursive for c:\windows\$hf_mig$\KB3033395 failed; error=0x00000003
8.937: UpdateSpUpdSvcInf: Source [ProcessesToRunAfterReboot] section is empty; nothing to do.
12.687: RebootNecessary = 0,WizardInput = 0 , DontReboot = 1, ForceRestart = 0