Have you found a solution? i also don't have Windows Update folder.
Found this on line:
There is one thing which lots of users want to know-- Windows 10 update file location.
It is in the Windows installation folder but hidden.
It is a location of the folder where Windows Update automatically downloads the update file of the operating system. This file is further used to complete the installation of the update.
1. Launch File Explorer in Windows 10.
2. Navigate to the following location: C:\windows\software distribution\downloads.
Basically, the downloads folder is the default location of Windows 10 update file.
When you click on the folder you will see all of your Windows 10 update files.
My note: I navigated the above and saw all my installed updates. I did not dare click on any of the updates!!
I'm still searching
as to why my windows update folder disappeared from the registry and I'm coming up empty. I figure if
other people don't have the folder.. perhaps I don't need it! :) That may be wishful thinking on my part. I will assume, for now, "if it ain't broke, don't try to fix it." If I have problems in the future,
I'll need to look further.

I feel as if this is what I'm doing a this point.