*Update*
I've installed the latest available version of iTunes for lokale install (install.exe). My first post was done with the MS Store App, which also had the latest Version 121261 published (before install of the local iTunes the Store App was uninstalled and the device rebooted)
With the local iTunes I've redownloaded the iOS_16.1.1 Image. During unpacking of the Update it still fails with Error 3004, just like the MS Store App. The Logs show the same behaviour - it fails again at the tss requests.
[08:37:21.0866] amai: _AMAuthInstallBundleCreateServerRequestDictionary: personalizing "BatteryCharging1" Digest = "<CFData 000001D49DC475F0 [00007FFC73DE50F0]>{length = 48, capacity = 48, bytes = 0x59e4ff98b291423a072b93a8c3398a71 ... d4bd48973ed4282a}"
[08:37:21.0879] amai: AMAuthInstallBasebandApplyTssOverrides: failed to create CFDictionary from Options.plist The data couldn’t be read because it has been corrupamai: _AMAuthInstallBundlePopulateManifestProperties: Copying manifest property UniqueBuildID into request
[08:37:21.0879] amai: _AMAuthInstallBundlePopulateManifestProperties: Copying manifest property Ap,OSLongVersion into request
[08:37:21.0879] amai: _AMAuthInstallBundlePopulateManifestProperties: Copying manifest property PearlCertificationRootPub into request
[08:37:21.0879] amai: _AMAuthInstallBundlePopulateManifestProperties: Copying manifest property NeRDEpoch into request
[08:37:21.0882] amai: AMAuthInstallRequestSendSync: SSO function returned NULL and no SSO token was provided, SSO disabled.
[08:37:21.0889] amai: AMAuthInstallDebugWriteObject: debug object written: file://localhost/C:/Users/*UserName*/AppData/Local/Temp/Per4603.tmp/amai/debug/tss-request.plist
[08:37:21.0889] amai: tss_submit_job_with_retry: TSS Connection attempt 1 of 3. (Will retry if TSS_ERR_SERVER_NOT_REACHABLE.)
[08:37:22.0249] amai: tss_submit_job: HttpQueryInfo returned 401
[08:37:22.0249] amai: tss_submit_job: HTTP_CHECK_STATUS going to HTTP_STATE_DIALOG 401
[08:37:22.0249] amai: tss_submit_job: HTTP_STATE_DIALOG 1
[08:37:22.0251] amai: tss_submit_job: HttpQueryInfo returned 401
[08:37:22.0251] amai: tss_submit_job: HTTP_CHECK_STATUS going to HTTP_STATE_DIALOG 401
[08:37:22.0251] amai: tss_submit_job: HTTP_STATE_DIALOG 2
[08:37:22.0251] amai: tss_submit_job: HttpQueryInfo returned 401
The issue can be recreated with another Hostdevice and three different iPhones 11 always failing at the position during update.
I've talked to my network admin and he checked on the company network the proxy and firewall settings. According to him he can see the outgoing http requests from my IP and they were not blocked by any of his settings/policies.
As Shannon_DN described i will escalate a ticket with the official Apple Support and see if the engineers there can find the issue.
I will update this thread, once a solution is known.