If your Kodi update to v17.1 isn't going well through the Windows Store, you're not alone. Something is happening and there's a fix on the way.
Is the Kodi v17.1 update failing to install through Windows Store? Please be patient as @Microsoft will send a patch this week fixing it— Kodi (@KodiTV) March 23, 2017
There's no further information on exactly what the cause or solution is, just that something is broken and that it should be getting fixed soon.
Kodi has recently committed to the Windows Store with a good working relationship with Microsoft. The result is that eventually Kodi will transition to UWP which will also make it available on the Xbox One. The drawback, if you can call it that, is that things like this can happen which appear to be out of the main developer's hands.
If you didn't update to v17.1 yet then maybe hold tight and wait it out until we know the coast is clear.
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