Apologies for the late reply. I have been taking a mini break
Anyway, I actually believe that this issue is now resolved. Your update history shows a success, and the standalone thinks it has been installed. I think this is all that really needs to be said. If you are not happy, tell me, and I will check the logs files (not WindowsUpdate.log!)
However, I may as well explain the error message while I am here.
We are looking for an error lookup from winerror.h. This one is easy, because it only derives from winerror.h:
# for hex 0x80080005 / decimal -2146959355 :
# Server execution failed
# 1 matches found for "80080005"
This error code is usually caused by stress, and therefore sporadic. There must have been something in this update which stressed COM. You can read more about this error here: When CoCreateInstance returns 0x80080005 (CO_E_SERVER_EXEC_FAILURE) - Antimail - Site Home - MSDN Blogs
I don't think that it is worth trying such an invasive solution for something which I believe is already installed. However, let me explain what it does. All it really does is set the Desktop heap. On a computer such as yours, it will likely limit the heap. This is not necessarily a bad thing. I would imagine that this is already in place on your computer anyway. Desktop heap is stored next to page file for a good reason, they are quite similar. You can read more about this whole key here: Windows and the ClearCase process limit: Understanding the desktop heap
If you want me to see how installed it actually is, copy C:\Windows\Logs\CBS\CBS.log to your Desktop, right click on it > Send to > Compressed (zipped) folder, and upload that zip file here.
I hope I have managed to contribute something, even in my lateness!