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This one failed the first time for me, but installed without any issues on the second attempt.
I'm having the same problem too. I am on the Beta Channel 22635.3640 ni_release.
Is there a way to clear the cache of the older update, or it just a matter of waiting for the newer update to propagate?
I just saw another version released (Cumulative Update for Windows 11 Insider Preview (10.0.22635.3720) (KB5039312)) I'm getting the same error as...
Same issue here on MBP M1 Pro on Windows 11 build 22489.