If you enable the following group policy setting you will end up with the error.
Computer/Administrative Templates/Windows Updates/DoNotConnectToWindowsUpdateInternetLocations - Enabled
The above should be set to Not Configured
This policy shows up in the registry under the following key.
Deleting the DoNotConnectToWindowsUpdateInternetLocations in the registry does not resolve the issue but changing it in group policy may helps.
You could try the method above.