So glad I found this thread, the past couple days have been miserable. I have the same exact issue, same error code and same blink of the installation circle before rebooting back into 8.1. Several hours spent trying solution after solution from all over the internet and I have tried everything, from checking disk for errors and fixing it to system defragment, same error every single time. Every attempt to update also brings up the 2GB download which just gets on my nerves and I'm a gamer so I have pretty fast wifi, my 2GB finished in like 5-8 minutes and that itself annoys me so I can imagine other people who spend hours waiting.
Seeing that the bootcamp 6 was out i was finially excited thinking it would fix the issue, trying to install bootcamp 6 itself was such a pain, I had to download the previous version of bootcamp, run it and repair it before running bootcamp 6 off of a flash drive; for some reason the apple software update just wouldnt show bootcamp 6 as an update. So anyways, after bring it up to date i was excited, thought this was finally it and like britops mentioned above, everything happened in the same order with the same error fail code.
My only differences is, 1 i'm not sure if mine is a fusion drive, im using the 250gb macbook pro late 2013 and i actually have my windows partition installed on a separate western digital 1TB hardrive (no way was I gonna split the 250gb or mac and windows, i wouldnt have enough space to even install 1 game).
From all the reading and reasearch i have done on this error code, it seems to me that perhaps this error only pops up on people who run 2 different OS. I was reading on another forum about some people running linux and windows and they mentioned about disabling the linux partition which fixed this exact error and after updating to windows 10 they reconfigured the linux partition. Some people were also suggesting to unplug the drive from the computer which I think could solve the problem but i dont think that is possible on any macs in the recent years. I suspect this issue is on hands to fix, not apple as people dual booting with linux also expirence the exact error.
Would be so gad if someone manages to find a fix or work around that doesnt involve doing a fresh install of windows.