Windows Updates gets reverted on Server 2019 with Citrix

Hi

I have a few Server 2019 on Citrix MCS.. When trying to update CU patches it goes to 25% and then restarts and then rollback "Could not apply changes..". It has happened with CU2021-08, 2021-09 and 2021-10. I have tried DISM, chkdsk, sfcfix and also going through permissions in registry but I cannot seem to find it. Also did a complete Windows Update reset.

Updates are distributed via SCCM, but installing the CU patches manually from WU gives the same error.

In CBS.LOG, it looks like poqexec has issues creating directory "Accessibility". 
I have created that folder manually but still the same issue, somehow it seems corrupt, yet DISM cannot find any corruptions.

Anyone have any suggestions I would be grateful.

2021-10-18 15:02:18, Error                 CSI    00000008 (F) Error: ResolvePendingTransactions called after poqexec failure (call 1)
  Status = STATUS_ACCESS_DENIED, Operation = CreateDirectory, DiagString = [l:70]'\??\C:\ProgramData\Microsoft\Windows\Start Menu\Programs\Accessibility'
[gle=0x80004005]
2021-10-18 15:02:18, Info                  CBS    Could not get active session for current session file logging [HRESULT = 0x80004003 - E_POINTER]
2021-10-18 15:02:18, Info                  CBS    Could not get file name for current session file logging [HRESULT = 0x80004003 - E_POINTER]
2021-10-18 15:02:18, Info                  CBS    Added C:\Windows\Logs\CBS\CBS.log to WER report.
2021-10-18 15:02:18, Info                  CBS    Added C:\Windows\Logs\CBS\CbsPersist_20211018130056.log to WER report.
2021-10-18 15:02:18, Info                  CBS    Added C:\Windows\Logs\CBS\CbsPersist_20211018123726.log to WER report.
2021-10-18 15:02:18, Info                  CBS    Added C:\Windows\Logs\CBS\CbsPersist_20211018122827.log to WER report.
2021-10-18 15:02:18, Info                  CBS    Added C:\Windows\Logs\CBS\CbsPersist_20211018120535.log to WER report.
2021-10-18 15:02:18, Info                  CBS    Added C:\Windows\Logs\CBS\CbsPersist_20211018115639.log to WER report.
2021-10-18 15:02:18, Info                  CBS    Not able to add pending.xml.bad to Windows Error Report. [HRESULT = 0x80070002 - ERROR_FILE_NOT_FOUND]
2021-10-18 15:02:18, Info                  CBS    Not able to add SCM.EVM to Windows Error Report. [HRESULT = 0x80070002 - ERROR_FILE_NOT_FOUND]
2021-10-18 15:02:19, Info                  CBS    Reporting poqexec status with status: 0xc0000022, failed file: Accessibility, interfering process: , context: PSRL, first merged sequence: 161
2021-10-18 15:02:19, Error                 CBS    Startup: Primitive operations failed, startupPhase: 0.  The transaction will be cancelled. [HRESULT = 0x800f0921 - CBS_E_PRIMITIVES_FAILED]
2021-10-18 15:02:19, Info                  CBS    Setting ExecuteState key to: CbsExecuteStateInitiateRollback | CbsExecuteStateFlagPrimitivesFailed
2021-10-18 15:02:19, Info                  CBS    SetProgressMessage: progressMessageStage: -1, ExecuteState: CbsExecuteStateInitiateRollback | CbsExecuteStateFlagPrimitivesFailed, SubStage: 0
2021-10-18 15:02:19, Info                  CBS    Progress: UI message updated. Operation type: Update. Stage: 1 out of 1. Rollback.
2021-10-18 15:02:22, Info                  CSI    00000009 Creating NT transaction (seq 2)
2021-10-18 15:02:22, Info                  CSI    0000000a Created NT transaction (seq 2) result 0x00000000, handle @0x4b8
2021-10-18 15:02:28, Info                  CSI    0000000b@2021/10/18:13:02:28.780 Beginning NT transaction commit...
2021-10-18 15:02:30, Info                  CSI    0000000c@2021/10/18:13:02:30.565 CSI perf trace:
CSIPERF:TXCOMMIT;1773424
2021-10-18 15:02:30, Info                  CBS    Setting ExecuteState key to: CbsExecuteStateStageDrivers | CbsExecuteStateFlagRollback | CbsExecuteStateFlagPrimitivesFailed