I had same issue. Removed update KB4074588. When I tried to uninstall it acts like it locks up. I clicked start > restart. Surface says updating...after reboot everything works again. Check for updates reinstalls update KB4074588 but everything is working this time.
A recent Windows update, March 5, 2018—KB4090913 (OS Build 16299.251), addressed this. More info:
- Addresses issue where some USB devices and onboard devices, such as a built-in laptop camera, keyboard, or mouse, stop working. This may occur when the Windows Update servicing stack incorrectly skips installing the newer version of some critical drivers in the cumulative update and uninstalls the currently active drivers during maintenance.