Eventually updating drivers using the Intel® Driver Update Utility could fail due to many facts, antivirus, firewalls, applications and services running in the background, internet traffic, etc, can affect this practice. You can always install the driver manually if you have trouble using this tool.
Use the following link to download the same driver version 126.96.36.199.4264 for Windows 10 64-bit:
Or use this other link to download the most recent version (188.8.131.5279):
We have not received reports of problems installing these drivers, though version 4279 was posted yesterday.
Explanation of why the installation is failing in your system is hard to find, it could be a Windows registry problem or something running in the background preventing the installation to complete. Make sure any previous version of the driver is uninstalled before installing the new one. Here are instructions to uninstall the graphics driver manually (follow instructions for Windows 8.1)
If this doesn’t help I am afraid it will be necessary to do deeper Windows debugging with Microsoft. Perhaps a system restore for a previous check point or a fresh Windows installation.