I think so, I did tried the following:
Your steps are correct. Update fails because the parts don't exist (though I was under the impression that update also creates parts, or perhaps it's that create that updates parts if they exist... I digress).
Since you cannot create the parts, you need to consider why.
You might want to consider giving your local GTAC office a call at this point as I suspect your log files will need to be reviewed to see if there are any additional clues.
Again the answers to your questions:
The log file points us to the possible problem:
>>> Error code 641084 caught in file "o:\ugnx1101\ip11\src\part\no\ind\Part_FamilyTemplateManager.cxx" at line number 3017 >>>> Error code 641084 successfully handled and acknowledged Part Families: Encountered legacy part family template with no pre-allocated handles for its member - ISO-3547-1,E,180x185x100*** EXCEPTION: Error code 641084 in line 963 of o:\ugnx1101\ip11\src\part\no\ind\part_fam_instances.c at Thu Mar 22 17:59:28 2018 West-Europa (standaardtijd) +++ Failed to create part, (null)