I was able to "fix it" without having to "restore to my latest retore point" .
Basically, after Windows automatic repair was failing without solving it,
1. Uninstalled latest Windows update from there
2. Opened cmd and executed: sfc /scannow - which stated that found broken windows files and fixed them
3. Performed another automatic repair, which managed to boot my PC in a "updating state"
4. Restart PC
There is NO chance of using KVRT again.
P.S.
If you have two monitors plugged, idk why but for me only the HDMI port from my graphics card was able to display anything on the output.