Been running with "Searching for updates on this computer..." for about 45 minutes.
Windows Update Log:
WindowsUpdate.log :: Free File Hosting - File Dropper: File Host for Mp3, Videos, Music, Documents.
CBS log:
CBS.log :: Free File Hosting - File Dropper: File Host for Mp3, Videos, Music, Documents.
Last few lines of Windows Update log:
2016-07-18 10:09:10:255 444 f00 DnldMgr Generating download request for update {1DB366ED-611E-4158-B294-7A527EEBD9F0}.203
2016-07-18 10:09:10:260 444 f00 Handler Generating request for CBS update 1DB366ED-611E-4158-B294-7A527EEBD9F0 in sandbox C:\Windows\SoftwareDistribution\Download\61e1ce1a65736b5ba1b9149875ae40d2
2016-07-18 10:09:10:261 444 f00 Handler Selected payload type is ptExpress
2016-07-18 10:09:10:302 444 f00 Handler UH: DpxRestoreJob returned 0x80070002
2016-07-18 10:09:10:302 444 f00 Handler Detected download state is dsHavePackage
2016-07-18 10:09:28:083 444 18f0 Handler FATAL: CBS called Error with 0x8e5e04b6,
2016-07-18 10:09:28:084 444 f00 Handler FATAL: UH: 0x8e5e04b6: Async stage operation failed in CUHCbsHandler::StageCbsPackage
2016-07-18 10:09:28:785 444 f00 Handler FATAL: Request generation for CBS update complete with hr=0x8e5e04b6 and pfResetSandbox=0
2016-07-18 10:09:28:785 444 f00 Handler FATAL: Error source is 106.
2016-07-18 10:09:29:517 444 f00 DnldMgr WARNING: Download request generation failed with 0x8e5e04b6.
2016-07-18 10:09:29:517 444 f00 DnldMgr Generating download request for update {DB3ADC24-B85A-4C0F-BFCD-70273B73D5B1}.205
2016-07-18 10:09:29:527 444 f00 Handler Generating request for CBS update DB3ADC24-B85A-4C0F-BFCD-70273B73D5B1 in sandbox C:\Windows\SoftwareDistribution\Download\4857f677bf1d79231ea0bd0d307a7eb8
2016-07-18 10:09:29:527 444 f00 Handler Selected payload type is ptExpress
2016-07-18 10:09:29:642 444 f00 Handler UH: DpxRestoreJob returned 0x80070002
2016-07-18 10:09:29:642 444 f00 Handler Detected download state is dsHavePackage