Solution:
Root Cause: Corrupted SoftwareDistribution & Catroot2 Cache
When Windows 12 downloads or stages an update payload, corrupted installation files or interrupted network downloads can lock the installer service into an unresolvable staging loop during startup.
Step-by-Step Fix:
1.Force Hard Reset into Advanced Startup:
Hold down the Power button for 10 seconds to force shut down your PC.Power on, and as soon as the Windows logo appears, press and hold the Power button again to interrupt boot.Repeat this 3 times until the Preparing Automatic Repair screen appears.Select Advanced options > Troubleshoot > Advanced options > Startup Settings > Restart.Press 4 or F4 to boot into Safe Mode.2.Clear the SoftwareDistribution & Catroot2 Cache:
Press Win + X and open Terminal (Admin) or Command Prompt (Admin).Stop the core update services by executing: cmd
net stop wuauserv
net stop cryptSvc
net stop bits
net stop msiserver
Rename the update cache folders to force Windows to rebuild them: cmd
ren C:\Windows\SoftwareDistribution SoftwareDistribution.old
ren C:\Windows\System32\catroot2 catroot2.old
Restart the stopped services: cmd
net start wuauserv
net start cryptSvc
net start bits
net start msiserver
3.Reboot and Resume Normal Boot:
Restart your PC normally. Windows 12 will generate clean update folders and exit the loop without impacting personal files.