Hi Jdie-strama,
As part of Windows 11 24H2 safeguard ID 52754008, Microsoft temporarily blocked installs on any PC with various wallpaper/customization apps (like Wallpaper Engine) to avoid UI issues—a precaution until app developers issued compatibility updates.
Please try to perform a Clean Boot as Clean Boot disables third-party apps from starting with Windows:
Press Windows + R, type msconfig
Go to Services > Hide all Microsoft services > Disable all
Go to Startup tab > Open Task Manager > Disable all items
Restart your PC
Try updating Windows again after this.