Feature update to Windows 10 (consumer edition), version 1709 and 1803 fails with an error when using WSUS to update a computer

I've deployed WSUS on Windows 2012 R2 server. After initial synchronization and approval/download of updates, computers installed all of them without issues except those two updates. Computers can download them from WSUS but they fail immediately after the installation process. I’ve tested it on a laptop with win10 pro OS and a virtual machine with win10 pro.

---

1709 fails with Error 0x80070032

1803 fails with Error 0xc1900130

In the Event Viewer on the client machines, I get Windows Error Reporting > Event Name: WindowsUpdateFailure3

---

WSUS server setup (only one WSUS server with WID)

Update Source and Proxy Server

Update Source: Sync from Microsoft Update

Products and Classifications

Products:

- Windows 10 Dynamic Update

- Windows 10

Classifications: Everything except drivers

Update Files and Languages

Update Files:

- Store update file locally on this server

- Download update file to this server only when updates are approved

WSUS version – 6.3.9600.18838, port 8530

---

• 2012R2 server has the latest windows updates
• Windows firewall is disabled
• I've set the MIME type on the IIS Server for the .esd, application/octet-stream
• Restarted IIS Website
• Restarted WSUS service
• I’ve tried setting up WSUS on Windows server 2016 – same issue, stuck on 1709 update.
• Ran Windows Update Troubleshooter on client machines numerous times, did not help.

Tried running manually (did not help):

net stop wuauserv

net stop cryptSvc

net stop bits

net stop msiserver

ren C:\Windows\SoftwareDistribution SoftwareDistribution.old

ren C:\Windows\System32\catroot2 Catroot2.old

net start wuauserv

net start cryptSvc

net start bits

net start msiserver

Tried installing KB articles as per:

https://social.technet.microsoft.com/Forums/en-US/1b14f88f-3358-4cec-a210-c697763e09b6/wsus-on-w2k12r2-getting-windowsupdatefailure3-event-id-1001-and-error-code-80244018?forum=winserverwsus

KB3159706 , KB3095113 – getting “This update is not applicable to your computer”

Tried all other suggestions from the same article, did not help, Server Cleanup Wizard, Re-Indexing the database…etc

Anyone have any suggestions what to try next or how to fix this? Thanks in advance!