@Nenad Neshov
Hi,
You could reset Windows update components by the method here:
https://learn.microsoft.com/en-us/windows/deployment/update/windows-update-resources
Then manually download the latest update to see if the same error occurs:
https://support.microsoft.com/en-us/topic/june-8-2021-kb5003646-os-build-17763-1999-81e2ff5a-0769-4e56-8762-059dd6e0d6bb
Also some common troubleshooting here:
https://windowsreport.com/0x800f0986-windows-update-error/
Please note: Information posted in the given link is hosted by a third party. Microsoft does not guarantee the accuracy and effectiveness of information.
Hope above information can help you.
============================================
If the Answer is helpful, please click "Accept Answer" and upvote it.
Note: Please follow the steps in our documentation to enable e-mail notifications if you want to receive the related email notification for this thread