Try manually resetting Windows Update Service:
Open administrative Command Prompt and type following commands one-by-one followed by Enter key.
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
Close Command Prompt and see if Windows Updates works then
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