This is definitely an odd issue. There is either an problem with the update file itself or with the windows updates database information about the particular update. You might have success in fixing the problematic update if you stop the wuauserv service, then rename the C:WindowsSoftwareDistribution folder, then start the service.
However, as a workaround for right now, I believe you should be able to hide the particular problematic update using BatchPatch Windows Updates > Hide/unhide action, after which you would then be able to continue installing all the other updates. You can later unhide it if you wish.
Separately, in the next release of BatchPatch we will modify the code so that instead of failing to install all updates, when an issue like this is encountered it will simply skip the problematic update and continue installing the other updates (in most cases it already does skip issues like this, but for this particularly case it does not, apparently).
Thanks
Doug