Microsoft has changed how it updates PCs that run the Windows Recovery Environment (WinRE). WinRE will be updated using the monthly cumulative update. This change only applies to PCs that get updates from Windows Update (WU) and Windows Server Update Services (WSUS). This change starts on June 27, 2023, for the Windows 11, version 22H2 cumulative update.
Some PCs might not have a recovery partition that is large enough to complete this update. Because of this, the update for WinRE might fail. You will receive the error message, "Windows Recovery Environment servicing failed.” To help you recover from this failure, this article provides instructions to manually resize your recovery partition if you get a system ErrorPhase of 2. This requires your device to have the recovery partition after the OS partition. Use the steps below to verify this.
Windows Recovery Partition (WinRE) recommended size is 900MB+
Information on how to manually resize the recovery partition: