I recently came into ownership of this same model and had the same problem. The problem also occurs when trying to install Windows 11 and update it. After much troubleshooting, I tracked the issue down to  bad driver updates labeled as "Intel Corporation - Extension - 3.1122.329.2" and "Intel Corporation - SoftwareComponent - 3.1122.329.2" the latter of which is the actual problematic one but is dependent on getting the first and may start downloading as soon as the first is installed, so it's easier to just block the first one. This is apparently some component of the Intel Killer WLAN driver but I couldn't find more details than that. As this is technically a driver you might be able to uninstall it from the Device manager without doing a fresh install but that's not the route I took.

My work around for this is as follows:

1. Download wushowhide.diagcab to a USB drive, ideally from the official microsoft link here. This will be needed later to hide the problematic driver update.
2. Install Windows WITHOUT an Internet connection, i.e. selecting "I don't have Internet" and "Setup later" for the Microsoft account in the networking segment of installation.
3. Once it boots, Open PowerShell as administrator and type "net stop wuauserv" to stop the windows update service. Some driver updates might still install in the background but I'm fairly sure the problematic one isn't one of them.
4. Once the update service has stopped, connect to your network and run the wushowhide.diagcab file.
5. Click "Next" then after a loading bar "Hide Updates" and then in the list that appears, find "Intel Corporation - Extension - 3.1122.329.2", check the box next to it, and click "Next"
6. Once that completes close the window and go back to the PowerShell window and type "net start wuauserv" to restart the update service. After that there shouldn't be anymore issues with Windows Update.

Hi, all.
Has anyone been able to solve this for Windows 10?

I noted that @Silicon42 's proposed solution is for Windows 11.

I just reinstalled my Alienware 17 R5 and am hitting this same issue. 

Thanks @Silicon42 . I just reinstalled Windows 10 on my Alienware 17 R5 and can confirm your solution works and solves the problem. I disabled / hid the 2 updates "Intel Corporation - Extension - 3.1122.329.2" and "Intel Corporation - SoftwareComponent - 3.1122.329.2" from being installed and now Windows Update runs fine. 

Thank you. :-)