After 7 weeks and getting extremely angry with MS Support, they gave me this fix, which worked. My actions in red or after dash.
Ø Start > type cmd in start search > right click “run as administrator”.
Ø Copy and paste the command below as given.
net stop wuauserv - OK
cd %systemroot% - OK
ren SoftwareDistribution SoftwareDistribution.old - Duplicate file found, so changed it to old2
net start wuauserv - OK
net stop bits - The BITS service is not started (message)
net start bits - OK
net stop cryptsvc - OK
cd %systemroot%\system32 - OK
ren catroot2 catroot2.old - Duplicate file found, so changed it to old2
net start cryptsvc - OK
regsvr32 Softpub.dll /s - OK
regsvr32 Wintrust.dll /s - OK
regsvr32 Initpki.dll /s - OK
regsvr32 Mssip32.dll /s - OK
Ø Restart the computer. Success, Windows update now working.