Systems with small hard drives (16 or 32 GB) or systems having low disk space had some issues while installing Windows 10 November update. Microsoft now has addressed that issue.
Error and the Fix:Earlier on such systems, on having low disk space even after connecting external storage , one was not able to free up disk space. And Windows would report an error on trying to install November update:
“We found some issues. Select this message to fix and finish updating.” When clicking the “Fix issues” button, a message would appear that said “Windows needs more space”, and one option provided is to “Choose another drive or attach an external drive...” If you selected this option and attached the external drive, Windows was not making good use of that external storage, and you may have seen a message saying that you still needed a similar amount of free space to install the update.
Microsoft has released a fix for this KB3124260 . With this fix, Windows will make better use of external storage making it much more likely that the install will continue after you select the external drive and Refreshing. The fix reduces the amount of space required on the C: drive by over 2 GB. This is great news with those using smaller devices like tablets with smaller hard disks.
Please note that this issue and fix only apply to Windows 10 devices upgrading to the November update. It does not apply to Windows 8.1 devices.
If one had experienced this issue earlier, then first one has to remove the temporary Windows installation files and then download them again, with the fix included. To do this, Run Disk Cleanup, Select the C drive, Click Clean up system files if asked. Select Temporary Windows installation files and click OK.
Then check for Windows updates to get the November update and this time update will include the fix that will make it easier to use the external drive in low disk space cases. This update replaces a previously released update 3120678.