I hope you tried these before you reset. Seems like it could be a corrupt update file thing, well if you didn't try redownloading it. Though it sounds like you downloaded it more than once.
https://support.us.playstation.com/app/ ... rror-codesFailed to update the system software. The update file may be corrupted. If you are updating the system via Internet, go to [Settings] > [System Software Update] and retry update.
If you are updating via USB storage device, delete the update file on USB and redownload the update file from this page. Then retry updating at [Settings] > [System Software Update]
Update via USB storage failed
Step 1: Go to Safe Mode, choose option 「7. Initialize PS4], and follow the onscreen instructions. You can find more information on Safe Mode here.
Step 2: If the error occurs again, please visit our Contact page for additional technical support.
Failed to update the system software. Update has timed out
.Updating Via Internet: Go to [Notifications] > [Downloads] and highlight the notification about the system software update. Push the [Options] button and delete the content. Then retry the update by going to [Settings] > [System Software Update]
Updating Via USB: Retry the update by going to [Settings] > [System Software Update]
USB error occured while updating the system software.
Step 1: Delete the Update file from the USB storage device
Step 2: Clear your browser cache and redownload the PUP file here. Then retry the system update.
Step 3: If the error persists, try another USB device.
Step 4: If the error occurs again there may be an issue with the PS4's hard drive (HDD). If you have previously changed the HDD, use the other HDD. If not, please visit our Contact page to contact SCEA for additional technical support.