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I've had the update downloaded for a few hours now, but it keeps failing on "Verifying update..." After a couple minutes of spinning, it says "Software Update Unavailable".

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The servers are down. It could be a few hours before the problems are fixed.

I had that a few times as well... kept retrying and it worked only when I unplugged from laptop. Not sure if it's related or not.

It appears to be related as after reading your comment I unplugged and tried again. It worked.

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