Can't Update Windows 10 1703 VM to 1709

[Downeaster59]

I don't know if this is a Windows issue or a VMWare Fusion issue, but I'll try here. 

I have a 2014 MacBook Pro (13 in.) with 16gb RAM, currently running macOS 10.13.1.  I have a Windows 10 VM on VMWare Fusion 10.0.1.  I have never had an issue with Windows Update until recently. The problem began before I upgraded VMWare Fusion from 8.5.9 to 10. The problem began when Windows Update tried to download and install the Feature Update to 1709. Everything downloads and seems to install. I restart the VM when prompted. I see the Windows message that tells me not to turn off my computer. When Windows reboots, I see a notification that it is trying to fix errors. Then, another notification that the update could not be installed, and so Windows will revert back to its previous version. This has happened several times, even after trying the Windows Troubleshooter. 

So, is this a Windows issue or a Fusion issue? What can I do about it? Thanks! 

[MaciekP]

With "windows update" Win 10 started installing the 1709 from 1703 installed and it is doing it one by one in the loop reporting the installation error in the update history.

It started in fusion 8.5.9 and after the upgrade to fusion 10.0.1 the problem is exactly the same...

[MaciekP]

This is the solution from VMWARE support which worked:

"Please power off the VM. Go to settings > hard disk > advanced options> and choose pre allocated disk space. > Start the vm."

[jmpawson]

Worked for me too!

[henckel]

Unfortunately, this did not work for me.

Still no chance to successfully complete the update process for 1709. 😕

VMware Version Version 10.1.1 (7520154)

Any more ideas?