It's not the update itself causing the problem, it's Windows Update failing to install it. Any update install could go awry and mess up Windows, wuauclt is not the most reliable of things in my experience, I've had to clear my update caché before.

Clearing the update cache does not work. Windows still tries to install it during shutdown. As for whether this update is the cause of the problem.....if I force a shutdown, the PC boots every single time. Obviously, this is not a desirable course of action, which is why I want to get rid of this POS.

UPDATE (LOL).....

 

After shutting down my PC abnormally once too often (to avoid this KB3177723 update from installing), Windows decided to run a disk scan at boot up. I noted that a huge number of files were being recovered duing this process, which made me somewhat apprehensive. Since then, I have been able to shut down the PC without Windows attempting to install this rubbish update. It looks like my problem has been resolved, and the PC appears to be working just fine.

Hii Christopher Low, 

If you are having such Windows update error then you should clear Windows Update cache to get rid of it.

Deleting Windows update cache will help you in solving Windows update errors like - Windows Update Stuck at Checking for Updates, Windows Update Stuck at preparing to install updates, or Windows Updates Stuck at 0% etc.

Source - http://www.zerodollartips.com/clear-windows-update-cache/

I hope it helps.

Thanks