Windows 7 Update appears to be compromised?

If the update didn't install, it didn't install.  The fact that it's listed in your update history doesn't mean that it's impacted your system.  ByGodZombie, because I know you will want assurances, let's get a support case set up to properly investigate the root cause of your system crashing.  I suspect it's not this update.

Please email me at sbradcpa-at-PacBell.net [change the -at- to @] or if that bounces (as sometimes PacBell does, email susan-at-sbslinks.com [also change the -at- to @] and I'll set up a support case to give your system a review.

To everyone else on this thread, I have an ask in on a listserve, I'll try to get official information back.

If the update didn't install, it didn't install.  The fact that it's listed in your update history doesn't mean that it's impacted your system.  

If the update mechanism was compromised and attackers were able to inject content then you have no assurances of that. Depending on what vulnerabilities exist in the update mechanism, then simply injecting content into the update description could be enough to cause remote code execution.

That said, this looks more like a font / character encoding issue and isn't necessarily a sign of intrusion.

What software is the screenshot you posted from, please?

Its from a server running WSUS.  Unless you're managing a large network with centralized patch deployment, you won't have anything like that.

He's looking at the WSUS Console (Windows Server Update Services). It's a part of the Windows Server OS's