Sounds like you may have had a network interruption during the update. If that's the case, then it's an indication of poor design on NI's part. Installer Design 101: you rename the old file rather than deleting it, and you don't delete the old file until the new one is in place and its checksum has been validated.
My dll, btw, is in Program Files\Cakewalk\Vstplugins\Kontakt. I don't remember if Service Center put it there or if it was my own customization.