That file shows part of the problem, you have many corrupted backup files and catalogs that have been corrupted or not verifiable. Why this is occurring needs to be addressed and then the entire database needs to be rebuilt.
You are running an anti-virus that might be involved. When I was running one, I would see things like extended update install times, especially during reboots, and many failed install attempts. There might be a setting to stop it from interfering, if it is, but you need to see if you can find that. If you want to keep what you have, then keep an eye on the updates to see if they become corrupted again if a repair can be accomplished.
If you have run any registry cleaners, you might stop that for testing, or anything else that says it is cleaning your system. You might try running a System File Check for an administrative command prompt by typing sfc /scannow. You also might try running a Chkdsk to see if any corruption is occurring on your hard drive. This might also repair some current problems.
But for now, I am going to recommend you either rename or delete the C:\Windows\SoftwareDisbribution folder. That will force the system to rebuild the database. It will take maybe a couple of days, depending how often the updates are attempted.
While this is going on, you probably need to hide the SP1 update if it is offered. There are some instances where, if other updates were installed in conjunction, would cause problems.