Update OSMedia
Once you have all your Microsoft Updates downloaded, you can run Update-OSMedia -Execute

Media and WinPE Phase
You can see the Servicing Stack, Cumulative Update, and NVMe Hotfix (if added) will be applied to all Windows 7 WinPE's

Operating System Phase
The Install.wim will then be updated with the Servicing Stack and Cumulative Updates

The remaining updates will be applied

and then the image will be completed

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