So far as I am concerned, KB 3035583 is a breach of trust, pure and simple. The information provided with the update misrepresents what it is for. The answers that have been provided about how to "hide" neglect to mention that this hides it only for the current session, and it will be back next time you re-boot.
This Microsoft shift to deception and trickery has caused this longtime user to change his policy on all three computers. No more automatic updates. I'll check manually when I get around to it. And I will inspect the list for KB 3035583 and any other nagware that comes to my attention. It will cost me more time and effort, and increase the odds that instead of adopting Windows 10, I will jump to another OS.
This was a huge blunder with strategic consequences.
I agree. I have read a lot and if what I've read is true, the entire Win10 OS will be downloaded unto Win7, Win8 & 8.1. This is a forced download and many of us are on limited bandwidth. Some are reporting this download is up to 6GB.
I have a lot of Window Updates to review to see if they are installed (by Microsoft without my permission) and whether I'll Uninstall them. Biggest mess and time consuming mistake they have made. There are a lot, a lot more Updates to be concerned about in addition to B 3035583 from what I've read.