Stable internet connection is important while trying to Install pending updates in Windows.
So, First of all check your internet Connection and then try to Check for Updates once it is stable.
In case you see any alerts when you check the Xbox Live service status, wait till the service is back up running (in green color), and then try again.
Xbox Play Anywhere only works with digital games, so you need to ensure you’re playing a digital version of the game you downloaded. Purchase a digital version from Xbox Store or Windows Store from your console, a Windows 10 device, or from Xbox and/or Microsoft official websites.
Your only solution will be to perform the system restore and at the worst fresh installation of the operating system to get rid of various issues that may be causing the error.
Xbox Play Anywhere digital game is perhaps one of the best things to happen in any gamer’s life.
That will be a signal that the error 0x80070002 is resolved.
It is evident from the message that this is an error related to Windows Update.
A possible moment(s) you are likely to encounter the error is when accessing Windows Update site to download and install updates.
One of these methods should resolve the error 0x80070002 on your computer depending on the particular cause.
It is only in very exceptional circumstances that the error will still occur.