Updates from M'soft, HP etc will all be well tested before they send them out.
However while a company will test their fixes on Windows XP, Windows Vista, Windows 7 etc, before they send them out, you cant test for every bit of hardware and every bit of software (and every release of every bit of software).
So you could have a situation where a new fix may cause problems in certain situations (with particular hardware or software).
And you could have a situation that M'soft and HP (for example) each send a fix out on the same day that "clash" with each other.
But this would soon be reported and one or other company will rush a fix out within hours to correct the problem.