Many reports from Insiders show us that the error 0x8007002C – 0x4001E when update to the new build (especially Aniversary) still happens. This problem also occurs when you want to run Windows 10 in dual boot mode with the older Windows version (7 or 8.1) or even the Ubuntu. The behavior is almost the same: PC restarts then display the message:
0x8007042B – 0x4001E
The installation failed in the SECOND_BOOT phase with an error during PRE_OOBE operation

There’re many solutions provided & confirmed that they can work, the issue is fixed permanently, once and forever.

List of solutions help fix ERROR 0x8007002C – 0x4001E

1. Reset Windows Update

Resetting the Windows Update & history in many cases can solve the issues like this.

2. Using the cmd

Try running the cmd with this command: “sfc /scannow“, then run DISM. This helps in some cases.

3. Repair Windows

Using the Repair Windows feature in Windows 10 Setup is also a good way to overcome the problem but this can take time.

4. Re-download the installation package

Your installation file may got corrupted, so download a new one can be a good option. Visit here to download it:
https://www.microsoft.com/en-us/software-download/windows10

Guide from Microsoft expert (refer from Installation failed in the SECOND_BOOT Phase with an error during BOOT operations 0xc1900101-0x40017)

Solution 1:

1. Deleted everything inside “C:WindowsSoftwareDistributionDownload”
2. Download the ISO file for the Windows 10 OS, burned the image to the DVD (i.e. decompresses the ISO file on disk(DVD), and installed from disk (i.e. while in Windows 8, click on the setup file on the DVD), and accepted “download updates”.
3. Uninstalled Norton Anti-virus, activated Microsoft Defender (Microsoft’s default virus protection) so the computer was not vulnerable to attacks from the internet.
4. Download the driver analyzer software from your computers manufacturers website (eg. Dell) to see which of the latest drivers you don’t have installed (eg. Chipset, Bios, hard disk, etc.).
5. Download drivers individually and install.
6. Re-start the Windows 10 installation.  Then we just “sat back and relaxed”…finally …well it took a long time to pass 95% (Configuring settings 82%) actually.   However,…it worked after 1-2 days

Solution 2:

– Run MSCONFIG and eliminated any non-Microsoft services and programs from starting
– Updated to the latest drivers available on the Lenovo website. Upgraded to latest Intel Display drivers.
– Run CHKDSK to scan for errors. None found.
– Run System File Checker (SFC) to scan for errors/corrupt files. None found.
– Disabled Windows Defender
– Disabled Windows Firewall
– Marked Windows partition as active (already marked)
– Disabled USB drives, hubs, etc. Nothing is plugged into the computer.
– Disabled all network adapters.
– Renamed: C:Users(Username)AppDataLocalTemp to ensure nothing inside is in conflict.

Try installing Windows 10 from both Windows Update and the Download Tool on the Windows Website. This should rule out any error in the installation files.

Solution 3:

In case none of above helps, you can try this ultimate solution. Please carefully go step-by-step

  • Disable (preferrably uninstall) your Antivirus utility before attempting the upgrade.
  • Restart a few times and try again.
  • Disable General USB Devices (example – Smart Card Reader).
  • If you are using a SCSI hard disk, make sure you have drivers available for your storage device on a thumdrive and it is connected. During Windows 10 setup, click the Custom Advanced Option and use the Load Driver command to load the appropriate driver for the SCSI drive. If this does not work and setup still fails, consider switching to a IDE based hard disk.
  • Do a clean boot and try again.
  • If you are upgrading using the .ISO file, disconnect from the Internet during setup, if you are connected by LAN (Ethernet) or Wi-Fi, disable both and attempt setup again.
  • If you are updating through Windows Update, when the download reaches 100% disconnect from the Internet LAN (Ethernet) or Wi-Fi and proceed with the installation.
  • If that does not work, try using the .ISO file to upgrade if possible.
  • If you are connected to a domain, switch to a local account
  • If you have any external devices attached to the machine, disconnect them (example, gaming controllers, USB keys, external hard disk, printers, non-essential devices).

If you are installing Windows 10 using Windows Update, try the following:
1. Press Windows Key + X on the keyboard and then select “Command Prompt (Admin)” from the menu.
2. Stop the BITS, Cryptographic, MSI Installer and the Windows Update Services. To do this, type the following commands at a command prompt. Press the “ENTER” key after you type each command.
                           net stop wuauserv
                           net stop cryptSvc
                           net stop bits
                           net stop msiserver
3. Now rename the SoftwareDistribution and Catroot2 folder. You can do this by typing the following commands in the Command Prompt. Press the “ENTER” key after you type each command.
                          ren C:WindowsSoftwareDistribution SoftwareDistribution.old
                          ren C:WindowsSystem32catroot2 Catroot2.old
4. Now, let’s restart the BITS, Cryptographic, MSI Installer and the Windows Update Services. Typethe following commands in the Command Prompt for this. Press the ENTER key after you type each command.
                        net start wuauserv
                        net start cryptSvc
                        net start bits
                        net start msiserver
5. Type Exit in the Command Prompt to close it and then restart the computer.

The cause for error 0xC1900101 – 0x40017 is known to be faulty drivers.
There have been reports of a USB driver causing this error.  Until a specific USB driver can be determined as a root cause, if you receive this error, we recommend you unplug all USB devices (other than your mouse and keyboard) as a troubleshooting step and try the upgrade again.  If the upgrade is then successful, you can plug the devices back in and they should function normally.
We have identified a few drivers associated with the following hardware or software that could be causing this problem:
If you have NVIDA Driver
NVIDIA — Video card manufacture.    Check to make sure you’ve upgraded to the latest video drivers
Antivirus and security-related products. if you have any Antivirus installed for (Free) uninstall it, if not then disable the Antivirus
Note: Antivirus software helps protecting your computer against viruses and other security threats. In most cases, you shouldn’t disable your antivirus software. If you have to temporarily disable it to install other software andor troubleshoot any pertinent issue, you should re-enable it as soon as you’re done. If you are connected to the Internet or a network while your antivirus software is disabled, your computer is vulnerable to malware attacks.
If you have any of these programs installed, please let us know if disabling, uninstalling, or upgrading the software or drivers allowed you to install

Hope this information helps and let us know the status of the issue in the comment section below, we will be glad to help you further.