I always put my updates in a folder like D:\3 then point W10UI.ini to that update folder and install the updates to my online system that way.
kb4501374 gave me that error too, then I installed kb4501375 and rebooted, then I installed kb4506933, No reboot needed, so I tried to install kb4501374 again, came up with this.
KB4501374 is the dynamic update. It is only used during an upgrade installation, hence not required (and in fact impossible) to install to update to 18362.207. All you need to install is first the servicing stack update (KB4506933) and the cumulative update (KB4501375). Again, when updating to the latest CU for a Windows build, you only need to install the SSU and then the CU.