Hi ,
You don't need to do debugging or a windows dump as this problem is easy to replicate and, as far as I can tell, a flaw in Windows Server 2016.
If you don't use Windows Update to do your Windows Updates (you use another product) you will get spammed with constant WindowsUpdateFailure3 Application Error events in Windows Server 2016 filling up the logs.
If you turn Windows update off through sconfig and/or Local Group Policy Editor (Configure Automatic Updates) you still get these annoying messages.
It is frustrating that Microsoft's own methods don't work!
You can turn off the Windows Update service all together which works, but I am not sure if there are any other knock-on effects of doing this like breaking Windows Defender... Any comments?