Just an FYI, I think you had a problem (originally like I experienced), when you have a WSUS server, that prevents the DISM command looking online successfully so you have to state a source instead.
Hi,
Thank you for your comment. I remember looking into the registry, as part of the troubleshooting, for they key indicating whether I might be using a local WSUS server but I could not find one. Additionally, I have also tried using an external source (multiple actually...I think I specify that somewhere in the post) but DISM is not able to make use of it either. It's possible that something is wrong with the COMPONENTS hive (Brian is looking into it), which SFC/SCANNOW and/or DISM cannot repair. An external tool would be needed to fix the issue, if this turns out to be the case. Then again, the troubleshooting is still a work in progress, so it could be something else altogether.