Windows update KB3000850 fails with error: 0x800700a1

Windows update KB3000850 fails with the following error: 0x800700a1
In WindowsUpdate.log there is the following:
FATAL: CBS called Error with 0x800700a1
In CBS.log there is the following error:
2014-11-25 11:17:54, Error                 CSI    00000ea8 (F) STATUS_OBJECT_PATH_SYNTAX_BAD #11395486# from Windows::Rtl::SystemImplementation::DirectFileSystemProvider::SysCreateFile(flags = 0, handle = {provider=NULL, handle=0, name= ("null")}, da = (SYNCHRONIZE|FILE_WRITE_ATTRIBUTES), oa = @0xa81c89d2f0->OBJECT_ATTRIBUTES {s:48; rd:NULL; on:[9]"MSDTC.LOG"; a:(OBJ_CASE_INSENSITIVE)}, iosb = @0xa81c89d398, as = (null), fa = (FILE_ATTRIBUTE_NORMAL), sa = (FILE_SHARE_READ|FILE_SHARE_WRITE|FILE_SHARE_DELETE), cd = FILE_OPEN, co = (FILE_NON_DIRECTORY_FILE|FILE_SYNCHRONOUS_IO_NONALERT|0x00004000), eab = NULL, eal = 0, disp = Invalid)[gle=0xd000003b]2014-11-25 11:17:54, Error                 CSI    00000ea9@2014/11/25:11:17:54.259 (F) base\wcp\sil\merged\ntu\ntsystem.cpp(2155): Error STATUS_OBJECT_PATH_SYNTAX_BAD originated in function Windows::Rtl::SystemImplementation::DirectFileSystemProvider::SysCreateFile expression: (null)[gle=0x80004005]

Tried all the suggestions in that thread, including running the DSIM tool.
Still getting the same error: 800700a1
I've uploaded the complete logs here: https://mega.co.nz/#F!wpZCHQRB!1GI7_PRJ3_S2nwITYVxDsg
This is a bigger snip from CBS.log around the errors:
2014-11-26 16:28:39, Info                  CSI    00000458 'From' Namespace [wcm://Microsoft-Windows-IPMIProvider?version=6.3.9600.16384&language=neutral&processorArchitecture=x86&publicKeyToken=31bf3856ad364e35&versionScope=nonSxS&scope=allUsers] not found, servicing aborted, reverting to Install of 'To'
2014-11-26 16:28:39, Info                  CSI    00000459 Processing Namespace [wcm://Microsoft-Windows-IPMIProvider?version=6.3.9600.17415&language=neutral&processorArchitecture=x86&publicKeyToken=31bf3856ad364e35&versionScope=nonSxS&scope=allUsers]
2014-11-26 16:28:39, Info                  CSI    0000045a done
2014-11-26 16:28:39, Info                  CSI    00000e98 Regenerating payload files from delta files on component: [ml:280{140},l:186{93}]"amd64_microsoft-windows-com-dtc-runtime_31bf3856ad364e35_6.3.9600.16384_none_0a1162f033fa01f6"
2014-11-26 16:28:39, Info                  CSI    00000e99 Creating NT transaction (seq 2), objectname [6]"(null)"
2014-11-26 16:28:39, Info                  CSI    00000e9a Created NT transaction (seq 2) result 0x00000000, handle @0xf7c
2014-11-26 16:28:39, Error                 CSI    00000e9b (F) STATUS_OBJECT_PATH_SYNTAX_BAD #8867646# from Windows::Rtl::SystemImplementation::DirectFileSystemProvider::SysCreateFile(flags = 0, handle = {provider=NULL, handle=0, name= ("null")}, da = (SYNCHRONIZE|FILE_WRITE_ATTRIBUTES), oa = @0xa2a758d410->OBJECT_ATTRIBUTES {s:48; rd:NULL; on:[9]"MSDTC.LOG"; a:(OBJ_CASE_INSENSITIVE)}, iosb = @0xa2a758d4b8, as = (null), fa = (FILE_ATTRIBUTE_NORMAL), sa = (FILE_SHARE_READ|FILE_SHARE_WRITE|FILE_SHARE_DELETE), cd = FILE_OPEN, co = (FILE_NON_DIRECTORY_FILE|FILE_SYNCHRONOUS_IO_NONALERT|0x00004000), eab = NULL, eal = 0, disp = Invalid)
[gle=0xd000003b]
2014-11-26 16:28:39, Error                 CSI    00000e9c@2014/11/26:16:28:39.304 (F) base\wcp\sil\merged\ntu\ntsystem.cpp(2155): Error STATUS_OBJECT_PATH_SYNTAX_BAD originated in function Windows::Rtl::SystemImplementation::DirectFileSystemProvider::SysCreateFile expression: (null)
[gle=0x80004005]
2014-11-26 16:28:39, Info                  CBS    Added C:\WINDOWS\Logs\CBS\CBS.log to WER report.
2014-11-26 16:28:39, Info                  CBS    Added C:\WINDOWS\Logs\CBS\CbsPersist_20141126162432.log to WER report.
2014-11-26 16:28:39, Info                  CBS    Added C:\WINDOWS\Logs\CBS\CbsPersist_20141120100026.cab to WER report.
2014-11-26 16:28:39, Info                  CBS    Added C:\WINDOWS\Logs\CBS\CbsPersist_20141028123021.cab to WER report.
2014-11-26 16:28:39, Info                  CBS    Not able to add pending.xml to Windows Error Report. [HRESULT = 0x80070002 - ERROR_FILE_NOT_FOUND]
2014-11-26 16:28:39, Info                  CBS    Not able to add pending.xml.bad to Windows Error Report. [HRESULT = 0x80070002 - ERROR_FILE_NOT_FOUND]
2014-11-26 16:28:39, Info                  CBS    Not able to add SCM.EVM to Windows Error Report. [HRESULT = 0x80070002 - ERROR_FILE_NOT_FOUND]
2014-11-26 16:28:39, Error                 CSI    00000e9d (F) STATUS_OBJECT_PATH_SYNTAX_BAD #8867645# from Windows::Rtl::SystemImplementation::CSystemIsolationLayer_IRtlSystemIsolationLayerTearoff::TransferFile(flags = (ReplaceIfExists|OpenForBackupIntent), op = [8]"HardLink", odir = NULL, oname = [l:18{9}]"MSDTC.LOG", ndir = @0xa29be2af38, nname = [l:18{9}]"MSDTC.LOG", disp = (null))
[gle=0xd000003b]
2014-11-26 16:28:39, Error                 CSI    00000e9e (F) STATUS_OBJECT_PATH_SYNTAX_BAD #8867523# from CFileInstaller::DoComponentOperation(...)[gle=0xd000003b]
2014-11-26 16:28:39, Error                 CSI    00000e9f (F) STATUS_OBJECT_PATH_SYNTAX_BAD #8867522# from CFileInstaller::ProcessComponentChange(...)[gle=0xd000003b]
2014-11-26 16:28:39, Error                 CSI    00000ea0 (F) STATUS_OBJECT_PATH_SYNTAX_BAD #8867521# from PrimitiveInstaller::CCoordinator::ProcessChange(Change 6.3.9600.16384 -> 6.3.9600.17415 for Microsoft-Windows-COM-DTC-Runtime, pA = PROCESSOR_ARCHITECTURE_AMD64 (9), Culture neutral, VersionScope = 1 nonSxS, PublicKeyToken = {l:8 b:31bf3856ad364e35}, Type neutral, TypeName neutral, PublicKey neutral)[gle=0xd000003b]
2014-11-26 16:28:39, Info                  CSI    0000045b SMI Primitive Installer [done]
2014-11-26 16:28:40, Error                 CSI    00000ea1 (F) STATUS_OBJECT_PATH_SYNTAX_BAD #4347192# from CCSDirectTransaction::PerformChangeAnalysis(...)[gle=0xd000003b]
2014-11-26 16:28:40, Error                 CSI    00000ea2 (F) STATUS_OBJECT_PATH_SYNTAX_BAD #4347191# from CCSDirectTransaction::PrepareForCommit(...)[gle=0xd000003b]
2014-11-26 16:28:40, Error                 CSI    00000ea3 (F) STATUS_OBJECT_PATH_SYNTAX_BAD #4347190# from CCSDirectTransaction::ExamineTransaction(...)[gle=0xd000003b]
2014-11-26 16:28:40, Error                 CSI    00000ea4 (F) STATUS_OBJECT_PATH_SYNTAX_BAD #4347189# from CCSDirectTransaction_IRtlTransaction::ExamineTransaction(...)[gle=0xd000003b]
2014-11-26 16:28:40, Info                  CSI    0000045c SMI Primitive Installer [started]
2014-11-26 16:28:40, Info                  CSI    0000045d 'From' Namespace [wcm://Microsoft-Windows-Installer-Engine?version=6.3.9600.17399&language=neutral&processorArchitecture=wow64&publicKeyToken=31bf3856ad364e35&versionScope=nonSxS&scope=allUsers] not found, servicing aborted, reverting to Install of 'To'
2014-11-26 16:28:40, Info                  CSI    0000045e Processing Namespace [wcm://Microsoft-Windows-Installer-Engine?version=6.3.9600.17415&language=neutral&processorArchitecture=wow64&publicKeyToken=31bf3856ad364e35&versionScope=nonSxS&scope=allUsers]
2014-11-26 16:28:40, Info                  CSI    0000045f done
2014-11-26 16:28:40, Info                  CSI    00000460 'From' Namespace [wcm://Microsoft.Windows.WinHTTP?version=5.1.9600.16384&language=neutral&processorArchitecture=wow64&publicKeyToken=31bf3856ad364e35&versionScope=nonSxS&scope=allUsers] not found, servicing aborted, reverting to Install of 'To'
2014-11-26 16:28:40, Info                  CSI    00000461 Processing Namespace [wcm://Microsoft.Windows.WinHTTP?version=5.1.9600.17415&language=neutral&processorArchitecture=wow64&publicKeyToken=31bf3856ad364e35&versionScope=nonSxS&scope=allUsers]
2014-11-26 16:28:40, Info                  CSI    00000462 done
Is this the root cause?
2014-11-26 16:28:39, Info                  CSI    00000e99 Creating NT transaction (seq 2), objectname [6]"(null)"
Is there supposed to be a "null" going into whatever that is?

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          <event channel="Application" level="win:Informational" message="$(string.ROOT_LIST_AUTO_UPDATE_URL_RETRIEVAL_INFORMATIONAL)" symbol="ROOT_LIST_AUTO_UPDATE_URL_RETRIEVAL_INFORMATIONAL"
    template="tid_1S" value="0x1002" />
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    value="0x1003" />
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    template="tid_1S" value="0x1004" />
          <event channel="Application" level="win:Error" message="$(string.ROOT_CERT_AUTO_UPDATE_URL_RETRIEVAL_ERROR)" symbol="ROOT_CERT_AUTO_UPDATE_URL_RETRIEVAL_ERROR" template="tid_1S_2S"
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          <event channel="Application" level="win:Informational" message="$(string.UNTRUSTED_ROOT_INFORMATIONAL)" symbol="UNTRUSTED_ROOT_INFORMATIONAL" template="tid_1S_2S" value="0x1009"
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          <event channel="Application" level="win:Informational" message="$(string.PARTIAL_CHAIN_INFORMATIONAL)" symbol="PARTIAL_CHAIN_INFORMATIONAL" template="tid_1S_2S" value="0x100A"
    />
          <event channel="Applicatio[gle=0x80004005]
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    template="tid_1S_2S" value="0x100B" />
          <event channel="Application" level="win:Informational" message="$(string.ROOT_AUTO_DELETE_INFORMATIONAL)" symbol="ROOT_AUTO_DELETE_INFORMATIONAL" template="tid_1S_2S" value="0x100C"
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          <event channel="Application" level="win:Informational" message="$(string.ROOT_AUTO_PROPERTY_UPDATE_INFORMATIONAL)" symbol="ROOT_AUTO_UPDATE_PROPERTY_INFORMATIONAL" template="tid_1S_2S"
    value="0x100D" />
          <event channel="Application" level="win:Error" message="$(string.ROOT_LIST_AUTO_UPDATE_ADD_ERROR)" symbol="ROOT_LIST_AUTO_UPDATE_ADD_ERROR" template="tid_1S_2S" value="0x100E"
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          <event channel="Application" level="win:Informational" message="$(string.ROOT_LIST_AUTO_UPDATE_INFORMATIONAL)" symbol="ROOT_LIST_AUTO_UPDATE_INFORMATIONAL" template="tid_1S"
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          <event channel="Application" level="win:Informational" message="$(string.DISALLOWED_LIST_AUTO_UPDATE_INFORMATIONAL)" symbol="DISALLOWED_LIST_AUTO_UPDATE_INFORMATIONAL" template="tid_1S"
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          <event channel="Application" level="win:Error" message="$(string.CATDB_JET_INIT_ERROR)" symbol="CATDB_JET_INIT_ERROR" template="ti[gle=0x80004005]
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          <event channel="Application" level="win:Critical" message="$(string.SYSTEMWRITER_ONIDENTITY_FAILURE)" symbol="SYSTEMWRITER_ONIDENTITY_FAILURE" template="tid_1S" value="0x0201"
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    symbol="CAPI2_RETRIEVE_OBJECT_BY_URL_WIRE_START_EVENT" task="CryptRetrieveObjectByUrlWire" template="TXml" value="52" />
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    Hi,
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    Andy Altmann
    TechNet Community Support

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