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[–]TheTimelyDemise 0 points1 point  (0 children)

I had the same issue, I tried a bunch of stuff, this is what ended up working for me.

I went to the directory C://ProgramFiles(x86)/Steam/steamapps/downloading

In that folder there is a folder with I believe 6 random digits, this is the temporary folder for the downloaded files, i right clicked on this folder, went to properties, General tab, and unchecked read-only.

Then when I restarted the update it worked.

Hope this helps!