What should I do if my MacBook Pro encounters an error during update installation?

try restarting in safe mode, as hedge against some third-party add-ons interfering with the update.

Start up your Mac in safe mode - Apple Support

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You have a hardware issue of some sort with the laptop which is affecting the Touchbar. Most likely the Touchbar and/or the Logic Board has a hardware issue, but even the built-in camera/Display can cause the problem. Some users claimed they were able to resolve the issue by reinstalling macOS over top of itself, but I'm skeptical, but maybe something caused the hidden EmbeddedOS file to become damaged. All cases I have personally seen with this error message while supporting my organization's Macs have been due to hardware issues.

The problem is that macOS is unable to upload the EmbeddedOS to the Touchbar (the Touchbar requires a special OS to be installed at every boot). If macOS is unable to upload the EmbeddedOS to the Touchbar, then macOS deletes the local copy from a hidden area of the internal SSD and must download a new copy. This laptop will not boot normally until macOS is able to both download a new copy of the EmbeddedOS from Apple's servers and successfully upload it to the Touchbar. The only way you can boot this laptop now is by booting into Safe Mode where the Touchbar is disabled. This can allow you to make sure you have a current backup of your data (I really hope you already have backups since there are so many new ways to permanently lose access to the data on the internal SSD with these USB-C Macs due to all the hardware, software, and security changes).

You can try running the Apple Diagnostics to see if any hardware issues are detected. Unfortunately the diagnostics don't always detect problems. If the diagnostics do report an issue, then you know you have a hardware issue.

Personally I would not spend any money on repairs of the 2016-2020 Intel Macs since I feel the money is better spent going towards a new laptop.

abubakr116 wrote:

Thank you for the response,

i did run then Use Apple Diagnostics to test your Mac - Apple Support thankfully it doesn’t show any hardware issues,

That is not what a passing result indicates. It means the diagnostics do not have a test for that particular issue, or the problem was not occurring at the time the diagnostics were run. The only useful diagnostic result is one which does report a problem.

i took the mac to an apple store, they did the basic update and said “if that happens again buy a new one”, that’s not a response i was expecting,

That was good advice since I did say in my previous post that I don't believe it is worthwhile to repair any 2016-2020 Intel Macs at this point. It probably also indicates your laptop is from 2016 or 2017 and is considered "Obsolete" or "Vintage" where you get no repairs for "Obsolete" hardware and only limited hardware support for "Vintage" products while the necessary parts are still available.

Obtaining service for your Apple product after an expired warranty - Apple Support

anyways can you help me solve the issue?

Did you read my earlier post where I clearly explained the issue here? I have personal experience with this issue from supporting my organization's Macs. Until you replace the bad hardware component(s), you will not be able to get past this error. The only way you can boot this laptop & somewhat use it is by booting into Safe Mode which disables the Touchbar, but Safe Mode also disables other items as well so you probably are not going to do much work in Safe Mode.