0x80070003 means the system cannot find the path specified: Windows Update is being sent to a folder that does not exist. It usually appears right at the start of the download or install stage, before real work begins.
DISM /Online /Cleanup-Image /RestoreHealth, then sfc /scannow. Restart afterwards; a repaired store often lets the same update sail through on the next attempt.net stop wuauserv, net stop cryptSvc, net stop bits, net stop msiserver. Rename C:\Windows\SoftwareDistribution to SoftwareDistribution.old and C:\Windows\System32\catroot2 to catroot2.old, then restart the four services with net start. This rebuilds the download cache and the update database from scratch.When the code survives a full component reset, install the update manually from the Microsoft Update Catalog, which uses its own path handling. If manual installs fail the same way, an in-place repair install rebuilds the servicing paths wholesale.
How is 0x80070003 different from 0x80070002? They are close: 0x80070002 is “file not found,” 0x80070003 is “path not found.” In update terms both mean something the updater expects is missing, and both are usually cured by resetting the update components so Windows rebuilds what it needs.
I deleted SoftwareDistribution myself to free space. Did I cause this? Possibly, if the Windows Update service was running at the time or the folder was only half rebuilt afterwards. The component reset in the steps stops the services first and renames rather than deletes, which is the safe order and resolves it.