Updates can break on Windows Server for a number of reasons, so this is not an all encompassing fix. But over the years I have seen this occasionally. What happens is that the server does not update and when you attempt a manual update via the Windows Updates setting screen, the updates never download: the downloads are typically stuck at 0% complete. This is apparently due to a corruption of the files within the “C:\Windows\SoftwareDistribution” folder. Because the update process is hung, the update service also appears to be hung up so the process to repair the problem is slightly more involved that one would expect.
First, open the services control applet:
-Click the "Start" Button -Type "services.msc" -Set Windows Update to "disabled" -Reboot the server
Once the server has re-started, verify that the Windows Update service is not running:
-Click the "Start" Button -Type "services.msc"
Rename the SoftwareDistribution folder:
Rename C:\Windows\SoftwareDistribution to SoftwareDistribution.old
Reset the update service:
-Click the "Start" Button -Type "services.msc" -Set windows update to "manual" -Start the service
Now manually run the updates and make sure they are downloaded and installed. Then perform the required server reboot.