That was the correct image version - it's subsequent updates that take it to the current 15063.296
When I tested the cmd I didn't add anything and the cmd started shortly after the second line about the scratch directory.
What are you using to post with ?
For the next try you will need a Win 10 install disk to see if an offboot sfc /scannow will repair the system.
Can you execute the bcdedit cmds to change the boot menu policy to legacy so that you can change the boot order, either by going into the BIOS or use F12 for the one off boot order change.
To boot up with install media in Win 10 it's best to turn off fast start in the power options but as you can't get in, you may be able to do it by turning off Hibernate which also removes fast start.
You do that by entering the cmd powercfg -h off and if you want it back it back on after, just redo the cmd changing off to on.
If you don't have a Win 10 install disk and have access to another machine, you can create one by hitting the Download tool now button in
https://www.microsoft.com/en-gb/software-download/windows10 but read how to create the media first.
That ISO is for 1703 15063.0
When you have created the install disk, changed the boot menu policy and checked that it will let you in, tap F12 as you switch on and use the cursor keys to select the DVD drive - it may be listed as ODD.
Insert the disk and press enter.
Press any key when prompted to boot from CD/DVD.
You may get a Windows Setup message about booting from installation media - click on No
Change/Confirm the keyboard language and when you get the Install now screen click on Repair your computer at the bottom left.
Select Troubleshoot - Command Prompt and enter bcdedit |find "osdevice" again to confirm it still sees the volume where it did before.
It may list it as D: this time if it listed it as C: before.
Enter this cmd where X is your partition letter -
sfc /scannow /offbootdir=X:\ /offwindir=X:\Windows
Note there is a space before each /
I don't know if this will resolve as a previous sfc /scannow didn't find anything, but it will check your file system against an incorrupt source.
It will take a while to run and you won't see a % progress as you do when running a sfc /scannow from within Windows.
Enter exit to close the cmd window - remove the disk and shutdown for about 20 secs then reboot to see if you get back in normally, but let us know if you get any error messages when running the cmd.
BTW - How did you type the dism cmd when you added the scratch directory ?