0x80070103 in Windows Update practice means the driver being offered is already installed, or is older than the driver currently in place, so installing it would be a downgrade or a duplicate. It appears almost exclusively on driver updates, often under Optional updates, and it is one of the few update errors that is essentially harmless.
There is nothing to escalate to: no component reset or repair install is warranted for this code alone. If the device itself misbehaves, that is a driver problem to solve on the device’s terms (manufacturer driver, Device Manager rollback), not through this error.
Will this error block other updates? No. It attaches to the single driver package that was declined. Security and cumulative updates proceed independently, which is another reason it is safe to leave alone.
Why does Windows offer a driver it then refuses to install? The catalog match is based on hardware IDs, and several driver versions can match one device. Windows offers the match, the installer then compares versions and declines to downgrade or duplicate. The two stages disagreeing looks like an error but is the safeguard working.