Having a similar issue to these peeps and with no resolution. https://social.technet.microsoft.com/Forums/en-US/d30f6bbb-2175-4b5a-8d50-b5febfee8bdc/after-upgrading-to-sccm-1610-some-systems-are-unable-to-download-windows-updates?forum=ConfigMgrCBGeneral
Purposely, the content for our software updates has been removed from the local DP and so we would assume that the client would then fallback to the Windows Update site to download content. The Location Services log shows the content request and seems to correctly return the location for the updates online which, when pasted into browser, the user is prompted to download the update. One odd thing is that we have determined a system with the odler version of the client works just fine as “Asigurds” stated in the post. Anyone else having a similar issue? I’m thinking this could be a bug with the new version. Seems there have been some boundary changes. Could be related. Hmmm Snippit from Location request: Calling back with the following distribution points LocationServices 1/31/2017 12:45:48 PM 12684 (0x318C) Distribution Point='net:http://wsus.ds.download.windowsupdate.com/d/msdownload/update/software/secu/2016/12/windows10.0-kb3210721-x64_2aed3c58a2b6b575e92e7f0f67974445186d7707.cab', Locality='WUMU', Version='0', Capabilities='<Capabilities/>', Signature='', ForestTrust='FALSE', LocationServices 1/31/2017 12:45:48 PM 12684 (0x318C) Calling back with locations for location request {A7E8AA8B-CCD0-4DFD-B284-AA8455318FC2} LocationServices 1/31/2017 12:45:48 PM 12684 (0x318C) Thanks for any help you may have. -Nick-