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Event ID: 4374 Source: Microsoft-Windows-Servicing

Windows Servicing identified that package KB905866(Update) is not applicable for this system
KB967723 (Security Update) - The windows update service is attempting to install the wrong version of the package for the OS. Download the correct package manually.
The first step in troubleshooting this problem would be to check the requirements (or to what system is applicable) for the update specified in the event. Verify if this is the right operating system, service pack, platform etc..., even small details may count against the compatibility of the update with that particular computer.

T756288 provides several suggestions on how to check if a particular update is applicable to the system in question. If that particular hotfix installation completed successfully, these events can be disregarded.

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