This is confirmed. I spent nearly 3 hours online and on the phone with so called "Tech Support" related to an issue with this and other updates. I
In my case not only harassed constantly by KB3035583 but this is causing me headaches as well:
So while unsucessfullly trying to get a fix for that issue I made a point to try to have some discussion with whatever level tech support that was giving me misinformation at the time. In this case, he as well as the supervisor at the time, accidentially spilled a little truth and did confirm that KB3035583 can only be hidden for one instance. In other words, if you reboot, it comes back..if you reset Windows update it comes back, if you check for updates, it comes back. I made sure to tell him that his company was making probably their biggest mistake IMHO since "SecureBoot". I even linked him to this discussion. This is out of control. The funny thing both he and his supervisor said were pretty alarming. They both mentioned that (almost in the exact same phrasing that "We are very sorry this has affected you in this way (after I showed him the damage that was done to my .net frameworks and other Windows related products..more on that later). "But coming next year will be a fix for this specific issue". They either were unable or unwilling to elaborate on that and I'm really hoping that they were hinting at some sort of removal to this issue with this specific malware, I mean "update".
Unfortunately after reading more online, I am leaning towards thinking that this just may intensify, already have good information that the update will be released again, but this time will likely just be released under another KB#. The descriptions for the updates are pretty useless and downright deceitful. I'm not holding out much hope at this point as they seemed to have reached some point of no return and will likely continue with these tactics.
During this conversation I mentioned another problem I was having on Windows 7. Whe the "tech" asked why I didn't want to update to Windows 10 I mentioned that I had tested Win10 during tech prev year and that during that time I had nothing but suspiciously ruined disks, BSOD too numerous to mention and then just the fact that I didn't like Windows 10 in this current version. In my case I had tried to restore my Windows 7 after a reboot after (offline WSUS) update and that when I had rebooted by existing Windows 10 Pro (I had kept what I had from the July 2015 "RTM" release but on a separate disk and partiton.
I had not even tried to access that partition since a couple of days after July 2015 RTM release. The "tech" said that Windows 10 will erase itself if not accessed in a 30 day period. It will possibly also erase any other existing Windows installation as well, especially if you registered the Win 10 using your existing 8.1 or 7 product key. In my case Windows 10 had never required a product key. So actually there is a ton of maleware that is LESS harmful than Microsoft themselves. I would love to hear some confirmation or refutation on that one..If so I am surely done with Windows for all these issues.