This fix that neemo provided looks promising, I haven't seen it before. Let's hope that does the trick.
If the problem persists, there's another place you can disable
Windows Updates (WU) from, and that's your
WUDO settings. Here's a link on how to disable that:
Windows Update Delivery Optimization: FAQ. Keep in mind that these settings won't necessary keep your system from blocking out all udpates coming into your computer from WU. Several of us here who are W10 testers felt that this should do the trick. However, Tuesday of this week I had received the AU update on my main desktop PC and it caused havoc, and at that time my
WUDO was on, as I had it on all 5(five) of my W10 machines trying to get them all updated from the pre-AU v1511 version. So, on my desktop PC (a Dell) I disabled
WUDO completely as per instructions in the article in the Link above, and the AU came into my computer again without my knowledge or permission on Friday of this week also. In between, on Thursday of this week I did an Image Restore via Macrium back to my Wednesday morning backup to v1511. On Friday morning, the
AU update v1607 came in again, but this time I was ready and made adjustments to the 2 things the AU was messing up, my Wallpaper and my Sidebar Gadgets. I manually reset my Wallpaper and when W10 offered to repair my Sidebar Gadgets, I said
"No" this time and let the AU complete. I did a shutdown and reboot and once I checked that everything else was working including my Wallpaper, I then reinstalled the Sidebar Gadets app, it worked, and all has been good since!
So you are aware, many people have been complaining since Aug. 2nd that the AU update wouldn't come into their computers at all, including me, and we reported that to Microsoft on numerous occasions including their Insider Tester forum.
In any case, the last 2 weeks, Microsoft has been pushing out the AU again in numbers, and it's hit my computers now 3 times at least with my
WUDO settings set to maximum,
AND ONCE MORE WITH MY WUDO SETTINGS DISABLED! And still it's coming in.
There have been a number of users reporting this problem and so far we've only seen 2 people who have had the AU update go in cleanly without problems (out of thousands).
There have been many complaints about this, and the AU itself hasn't had much of a success rate on installing via the WU and Internet automatic download. Microsoft seems to have improved it some--at least it's being widely distributed now--but it's still a computer killer at this point.
We are telling users here-I am at least- that if you really want the AU installed into your W10 computer,
the best way to do that is via downloading the Microsoft MCT tool from ISO file and perform a Clean Install.
Best of luck,
<<<BIGBEARJEDI>>>