I now installed this update to my 2 Virtual Machines (Windows 7 Home Premium) and all work fine and on primary PC too.
bro you are runing around in circeles update should be off to avoid problemsIf someone works in IT, then that is their job (to fix a issue which needs solving from the person responsible to fix the issues if they have the knowledge).
You can set Windows to check for updates, however, not download nor install them.
Or, as @Dani Santos suggested, allow Windows to download however not automatically install the updates.
Then, you can wait a few days to check for any reports of a fault update, before proceeding to allow Windows to install the update.