I can't tell about the many softwares I test on my PC. Probably the error is not because of Softwares I use.
I hadn't used Win update since a week.
I tried troubleshooting but to my vain.
What could be the problem?
First of all, I would like to congratulate you on creating a great post. The title does not contain an urgent "Please help" with no information provided -- it actually contains an error code. And it was made in the appropriate forum on the website.
Your Windows Update temp folder under the c:\windows directory is probably corrupted.
For more information, please see this link. Try following these instructions and let us see what happens.