CanadianTech:
I'm sorry that you remain unconvinced.
Because the problem is so repeatable and because so many others have experienced the identical symptoms on different machines, some loaded from OEM media and some loaded using the Windows 7 SP1 RTM media, I am completely convinced of the issue. I think I have pretty well proven and documented the issue. But to each his own...
As far as impatience, I personally myself left Windows Update running for over 12 hours on two occasions (I thought the first one must have been a fluke) without success. I can't know for sure, but I suspect that if you left it running for 12 years it wouldn't have made any difference.
Regarding the security software issue, as I stated several times in previous posts, there was no security software involved. The problem even occurred with the Windows 7 SP1 RTM media, which I think we can all agree doesn't contain any security software.
Your statements about the two new computers, monthly updates occurring without a hitch and Windows 10 do not apply to the issue described in this post. To restate again, this post specifically refers to users who reload their PC and when the PC connects to Windows Update the first time, it automatically and without user action or warning installs an update to Windows Update. That update prevents WU from ever being used again on that machine.
Again, I have the failure mode well documented and it is easily reproducible: After a fresh reload and without the computer being connected to an Ethernet cable (making it impossible to connect to Microsoft) I can check the version of the WU components on the PC. Shortly after the PC is connected and without the user doing anything, the version of those components will change. If they change to the version documented herein, WU won't work again on that PC. If the user manually updates WU as per the instructions, it steps over the problematic version of WU (the one that gets automatically downloaded and installed) and avoids the issue. It's pretty cut and dried as far as I am concerned.
I have absolutely no doubt that some images are already patched beyond the problematic WU version and so would not exhibit the problem. But just because you haven't seen the problem yourself does not mean the issue does not exist.
Ken Morley