My questions are inline with your options below:
At this point we have three options that I can think of.
1. You hide the update from Windows Update. When you are ready to update to Windows 10, it should resolve the issue on its own.
I can't tell what this patch is supposed to fix, so I can't tell how much of a risk this option would be. I won't likely be able to do Win 10 until Q2 next year.
2. If you have a Windows 7 x64 with SP1 DVD you can do a repair install which will likely fix the issue. No programs or data would be lost.
If I do this with the win7 DVD I have for another machine, will it change/mess up my registration/product key? If so, can I fix that after the fact?
3. You can create a physical to virtual conversion of your machine and send it over to me via FTP (I would provide instructions). Then I can figure out how to resolve using methods that aren't really safe to do on a live system. Once I figure it out I could provide you the resolution.
Let's answer the above two, before I decide on this one.
Let me know if you wish to do any of the options above.