My laptop was one of the "lucky" ones to automatically get the update on day 1 of the roll-out (even though it is 5 year old Toshiba, but up to date with the Win 10 OS), and I just ran the update today after waiting to make a system image before running the upgrade.
I did not turn off or unistall Malwarebytes (Premium 3.2.2.2029) and it worked fine for me as an FYI.
Also that setting you show as "off" shows "on" for my system.
Good luck, I have had problems in the past with other updates on other computers, one where it took a few times, or there was a hardware conflict with a wireless wifi adaptor (Gateway installed at factory, but again an older machine, there were many who had the same issue, the wifi adaptor had to be removed from the computer to get it to go, that was on the normal Creator's update, not this one).
I am having a different issue with windows defender, will post about that separately.