Download this DISM.log, don't download the above one.
It was created after I tried to install kb4503292 through cmd with
cd /d c:\windows\temp
expand windows6.1-kb4503292-x64.msu -f:* C:\windows\temp
DISM.exe /Online /Add-Package /PackagePath:C:\windows\temp\windows6.1-kb4503292-x64.cab
Solved.
Solution:
I didn't have the monthly may rollup update kb4499164 and I installed it and then kb4503292 worked. But I found this through the CBS.log which I searched for an entry called STATUS_SXS_ASSEMBLY_MISSING and 4 lines above it, 4499164 was mentioned.
So I got kb4499164 from Microsoft Update Catalog
and ran it. It said its not applicable so I did this:
I renamed it to windows6.1-kb4499164.msu and copied and pasted it in C:\Windows\Temp
I opened command prompt and pasted these lines one at a time pressing enter: