This usually indicates a hardware issue affecting the Touchbar which usually requires a repair by Apple or an Apple Authorized Service Provider. I have seen a couple of users post that reinstalling macOS over top of itself by using Internet Recovery Mode fixed their problem, but in my own personal experience with our organization's Macs it has always required a hardware repair.
You won't be able to boot this laptop normally until macOS is able to download the "critical software update" which is actually just the EmbeddedOS which resides on a hidden partition which needs to be uploaded to the Touchbar. If macOS is unable to upload the EmbeddedOS to the Touchbar, it seems macOS deletes the old copy and goes to download a new copy. But if there is some sort of hardware issue affecting the Touchbar, then the EmbeddedOS is unable to be successfully loaded. Instead of accepting there may be a problem, macOS keeps repeating the process instead of letting macOS finish booting without the Touchbar.
You should be able to boot into Safe Mode to continue using the laptop in a reduced fashion (no Touchbar, and some other reduced functionality) and to make a good backup.
You should always have frequent and regular backups of your computer and all external media (including the cloud) which contains important & unique data.