As a best practice, I keep my system up to date with latest security updates. This time I am bit out-dated; since a month I didn’t run all the Windows Updates. Recently, SQL Server 2012 released a security update which can be found in Windows Update:

The update size is 425.5MB! I get wild after seeing any update which is more than 50MB, because my Internet connection is sometimes unstable, which may cause more trouble if I perform Online Updates. As I keep rebuilding my PC, I always prefer to keep the Offline version of update for reusing it again. This time again, I downloaded (link) this update from Microsoft Download Center.
I am using SQL Server 2012 64-bit on Windows 8 Pro, so I went and downloaded the 64-bit update file, which is SQLServer2012-KB2716442-x64.exe. When I ran this update manually, it went through series of steps via Wizard and it kept hanging at a place where I saw the message “Instance INSTANCE01: Updating ‘INSTANCE01′: MsiTimingAction“. (INSTANCE01 is the name of Instance I provided during installation earlier)

Very surprisingly, this time I didn’t have any option to close or stop this update process (see the red arrows above). I waited for almost 3 hours, but the progress bar didn’t move. Finally, I rebooted my Windows 8 OS.
Today morning, I tried reruning the update and to my surprise it finished without any problem.

Does this mean that sometimes Rebooting the OS helps to fix/troubleshoot issues?
I know that my solution/findings may sound weird for you, but I just thought of sharing this with others. Meanwhile, I also did some search and have the below additional information:
1) Linvi’s blog (link) on MSDN – This has some steps to solve this problem. As per this blog post, Linvi suggests to make changes to registry. I tried peeking into my registry hive HKLM\SOFTWARE\Microsoft\Microsoft SQL Server\110\ConfigurationState, but I found that all my key’s already had the value of 1.
2) View and Read SQL Server Setup Log Files (link) on Technet - This is good read for finding the problems. I navigated to C:\Program Files\Microsoft SQL Server\110\Setup Bootstrap\Log\20130225_072103\ (last folder is the Date/Time stamp, which may vary) and analyzed the log files, but I could not get any specific hints in any of the log file. Its a good bookmark for future troubleshooting.
If anyone has got the real way to fix the problem, then I would like to hear from you. Please leave your comments.