The problem has changed slightly ... I carefully read through previous similar Posts by BrianDrab and have managed to remove the KB3035583 & other errors from the CheckSUR. (attached), removing the offending Registry entries (changing permissions where necessary)
I then tried the reinstall of update KB4034664 which failed, checked the CBS.log which told me a different single KB4022719 (June17 Security Update) error so I have manually attempted that update, which although failed, upon checking the CBS.log noticed it was then yet a DIFFERENT KB3197868 (Nov16 Security Update) error.
I've subsequently gone through (in the order they failed) manual install attempts for KB3197868 (Nov16), KB3207752 (Dec16), KB3212646 (Jan17), KB4012215 (Mar17), KB4015549 (Apr17), KB4019264 (May17) and finally KB3185330 (Oct16) which was the only successful one.
The original KB4034664 (plus other optional updates) will STILL not install so here are the latest CBS.log and CheckSUR files.