I cannot reset or use the system recovery or system restore my Dell XPS 9350

I'm not sure what it's going on with my laptop but I cannot do anything when trying to upgrade or reset or reinstall or even use the system recovery partition at all.

BACKGROUND:

I have been using my Dell XPS 13 (9350) for a little over a year with no problems. I use the TB15 dock via USB-C to connect to my Dell P2715Q monitor. Recently I did a reset on my computer (late February) and that's when problems started popping up. I noticed that I would get this pop-up whenever I tried to connect to the dock

After selecting "Always Connect" to both options, it would trigger a BSOD. ALWAYS.

The error is SYSTEM_THREAD_EXCEPTION_NOT_HANDLED. According to what I researched, it is caused due to old or incompatible graphic card drivers. Even after I reinstalled the latest drivers for my dock, it didn't fix anything. So, after dealing with this annoyance longer than I could (over a month, I would just ignore the Approve Thunderbolt Devices window, I could mirror to my monitor but could not use any of the I/O ports on my dock), I decided to reset my computer once again.

This time I used the system recovery option so it would reset my computer to its factory image. After doing so, and once I logged in. I wanted to update to the latest Windows 10 build available.

PROBLEM:

The factory Windows 10 build that came pre-installed in my computer is Version 1511 (OS Build 10586.873). The latest Windows 10 build available as of today is 15063.

So I went to Settings > Update & Security > Windows Update > and checked for any updates. Updates downloaded, I restarted my computer but then I was presented with several errors. The update process would fail several times.

In fact, several error messages would show saying something was wrong but didn't provide more information.

Someone help me! @DellCares @WindowsSupport - Dell XPS (9350) stuck at 10586.873 pic.twitter.com/rSIBsQBu4D

— Joe Morales (@astroXP) April 26, 2017

After so many times of trying to fix this and wasted so much time, I decided to do once again a system recovery (I tried doing a reset and even a system restore but same results showed up) but now when I was at the screen where it prompted my administrator account password, it marks it as wrong.

I made sure I was typing it right. I knew my password is right. Anywho. I decide to create a second administrator account just to narrow things down. I created a Tony account with "hello" as a password. There's no way I could misspell that. Lo and behold, the system marks it wrong as well.

I've ran out of ideas as to what I can do.

Please help and advise!!!