No, if you don't have this kind of partition, i don't think that issue come from System Reserved Drive. Do we have some errors in the logs, after updates fail? You can check in WindowsUpdate.log  
I have a  Power Edge T110 II  with Windows Server 2012 R2 installed. Before I start I know support ends in October of 2023 and we plan to upgrade to at least Server 2019 by then. My issue is that I have not been abled to successfully install the Security Rollup Updates for March 2023 (KB5023790) or April 2023 (KB5025285). All other updates have gone in fine. Every time it gets to 100% then says it could not install the updates ... undoing changes. at one point the March one disappeared so I figured since it is a rollup then try the April update. So that is why I am stating both. I have 3 server 2012 systems. The other 2 are HP Proliant ML370 G6 servers, I installed and set up for Remote Desktop and our ERP Database and they have both updated without an issue. The  Power Edge T110 II is the Domain Controller and was purchased from Dell with Server 2012 R2 Essentials pre-installed. In my search to discover how to fix the issue I learned that a possible cause is that there isn't enough space on the System Reserved drive. When I looked at the Dell server it doesn't have a System Reserved Drive at all! 39MB OEM 3 GB Recovery 255GB OS C: 672GB Data  Those are the drives it has factory installed. The HP's both have 350GB System Reserved Drive The April Update is over 500MB. I have tried everything I can find to resolve this and get this update installed. chkdsk   put Windows DVD in and ran.... DISM /Online /Cleanup-Image /CheckHealthDISM /Online /Cleanup-Image /ScanHealthDISM /Online /Cleanup-Image /RestoreHealth /source:wim:e:\sources\install.wim:1 /limitaccessDism.exe /online /Cleanup-Image /StartComponentCleanup /ResetBase /RestoreHealthsfc /scannow I run this until it says no corruption was found. made sure update services are running. reset windows updates net stop bitsnet stop wuauservnet stop cryptsvcDel "%ALLUSERSPROFILE%\Application Data\Microsoft\Network\Downloader\qmgr*.dat"Ren %Systemroot%\SoftwareDistribution\DataStore DataStore.bakRen %Systemroot%\SoftwareDistribution\Download Download.bakRen %Systemroot%\System32\catroot2 catroot2.baknet start bitsnet start wuauservnet start cryptsvc Multiples times with reboots in between. Nothing gets the updates to install so that is why the subject line here. I simply am at a loss as to the cause. Any Ideas or insight is welcome. Thank you Terry
Power Edge T110 II doesn't have System Reserved Drive which may be stopping 
updates