You should not have tried to install osu1, it probably was a console enrolled on the Insider program and using osu1 will always fail if it is not a console on the public dashboard. Insider versions are more recent than the public dashboards and no console allows the user to downgrade the operating system, that is why osu1 fails to install.
First try to fully reset the console in this recovery screen that appears the error code.
Then if it doesnt work you can try to connect this xbox hard drive to a computer, copy the system update partitions and follow the instructions on the link previously mentioned to create a hard drive that the xbox one can "see". After that, put the "system update" files you copied to the system update partitions of the new hard drive, connect on the console and wait for it to install.
If the hard drive of the xbox one was broken and it is not being recognized on pc, bad luck, you have to wait a while for a public release dashboard to be more recent than the Insider version installed on your console for the OSU1 file offered on the official support page to work or try your luck and find someone who has a Insider console willing to update to the latest version and share the System Update files for you. Microsoft offers no OSU1 file for Insider dashboards since they are updated so frequently.
I dont get the appeal to enrolling to the Insider program honestly, you dont get anything beyond having early access to new versions of the operating system and software which can cause issues like this and Microsoft offers no reward for having to deal with buggy dashboards.