So that also happened to me in the hinterlands of Acadia NP* one rainy morning in late May. At Otter Cliffs, to be precise. Poor to no connectivity. Decided to apply an update that had arrived overnight. About an hour later, the message referenced above appeared in the IC. Da fook? Per Ownership (via a 1-bar call from the top of a nearby rocky outcropping - did I mention in the rain - woo hoo), the installation wasn't done. Sure enough, more time passed, and the car did eventually start after a couple more reboots.
Perhaps a more descriptive message would be in order. Such as "Software update in progress. Be patient."
All in all, a potentially alarming situation, as for the most part there was no connectivity. Which could have meant a looong walk, a flatbed into the park adjacent Bar Harbor, Maine and from there to who knows where the closest SC is. While Tesla has that new 500-mile towing policy, I'd have to read through it to see if such an event was covered or not. Presumably it would be, but still, that would have ended up being a multi-day pain in the (rhymes with ass).
* Acadia National Park is relatively small - there are no hinterlands, as such. FWIW, it is also the 2nd-most visited national park in the States.