Windows 7 SP1 wont update error code 800706F7

This appears to be a common problem and it has been reported on multiple sites and the answer always seems to come down to removing kb3004394

On the laptop in question I checked and the update is not installed

I have also tried kb/971058 fix of "Automatically reset Windows Update components" that can be found here but that also made no change

https://support.microsoft.com/en-us/kb/971058

I have tried even renaming %systemroot%\SoftwareDistribution and clearing down the windows update log but no luck

sfc /scannow also did not fix it either

I have even tried to use WuInstall but that also fails this time with a different error

WuInstall /download_to "c:\temp\updates_download"


Copying download to c:\temp\updates_download ...
Copying bundle windows6.1-kb3108669-x64 to c:\temp\updates_download ....  OK
 Downloading finished, checking result ...
 Result Code: Failed
Detailed Result: 0x80240022 - WU_E_ALL_UPDATES_FAILED - Operation failed for all the updates.

Machine has Kaspersky Internet security installed