Microsoft details why your recent Windows 11 WinRE updates may have been failing

I've been making the recovery partition at least with 850M so it can accommodate large WinRe.
If you have the current recovery partition just after the C: partition you can make it larger by taking some C: space at the end of the partition.
Here is how.

Open a CMD window as administrator and type:

Reagentc /disable (to disable the current Recovery environment on the recovery partition)

diskpart
List disk (take note of the Windows disk number n)
sel disk n (replace n with the Windows disk number found above)
list part (take note of the Recovery partition number p)
sel part p (replace p with the Recovery partition number found above)
del part override (will delete the Recovery partition)
select vol C
shrink desired=350 (now you should have an unallocated space of the size of the Recovery partition + 350M)
create par prim (Will create a partition the size of the unallocated space)
format quick FS=NTFS label=Recovery
set id=de94bba4-06d1-4d40-a16a-bfd50179d6ac
gpt attributes=0x8000000000000001
assign letter=S
exit

Reagentc /setreimage /path S:\Recovery\WindowsRE (to set S: as the recovery partition)
Reagentc /enable (to set the Recovery environment on the recovery partition)
Reagentc /info (to check the recovery partition)

If the recovery partition is now on S: you can remove the S: letter assigned to it
diskpart
select vol S
remove letter=S
exit

I last did a repair install using the 22621.1702 media. Before running a Repair install I delete the Recovery partition, resize Windows to fill the whole space, then the repair creates a new recovery drive by itself. My Recovery partition is 792MB, with 729MB used