Have you tried booting into safe mode and trying to disable Windows Update from there? Use the system configuration tool to do it. Just press Windows Key + R, then type msconfig into the box and select OK. Click on the Boot tab, then click on Safe boot, then click on OK.
It is possible for you to reset Windows without loosing anything in the processor. Simply press Windows Key + I, then click on Update & Security, then click on Recovery. Click on Get started under Reset this PC. Then choose the option: Keep my files.