This error is due to an external device Windows Update is trying to update the driver on.
However, the device is probably not attached to the computer.
If you notice, just before the error appears, it shows what device it is trying to update.
Usually, its an old printer no longer being used.
You can try running the Windows Update Troubleshooter, but it has never worked for me.
But, you can delete the old driver from the computer to fix it.
Here's how:
1. Open Start and select "Settings > Devices > Printers and Scanners";
2. Under "Related settings", select "Print Server Properties";
3. Select the "Drivers" tab;
4. Click CHANGE DRIVERS SETTINGS at the bottom
5. In the list of installed drivers, select the printer driver and click "Remove";
6. Select "Remove driver and driver package", and click Ok.
7. If you get a confirmation prompt to "Remove Driver Package", click "Delete".