I found the solution to this issue which worked for me perfectly .. Go to BIOS and disable armoury crate interface (make it disabled).. then restart.. open Armoury Crate and let it install (will give error again).. now restart and enable the armoury crate interface in BIOS.. boot and enjoy the new armoury crate!!
I have the same problem and actually managed to install the ASUS HAL Central update by navigating to C:\Program Files (x86)\ASUS\RLSDownload\OptionHal\3_APP\12448\OptionHal (this is where the update is downloaded) and install the troublesome update. The problem is that - as you can see from the attached image - ASUS forgot to give the update a version number. The version number I have (once installed) is 0, so it is evident that the system will always find a new version (the 20220727) and the problem will manifest again every time you search for updates. PLEASE ASUS FIX IT!!!