I had this same error message after Windows update tried to find updates for about 20 minutes. I was able to fix by the following; may not work for everyone but it does not change anything that can't easily be reversed.
- launch system services and stop BITS and Windows Update services.
- In File Explorer navigate to C:\Windows and delete the Software Distribution file (can be restored form the recycle bin later if you need to)
- In Services restart BITS and Windows Update services.
- Go into settings and rerun Windows Update. (the Software Distribution folder and files will be recreated with fresh files).
- You should see Updates installing now.
Sometimes the folders/ files for Windows Update get messed up; this gives them a refresh.
Note: Alternatively in step 2 you can disable the BITS and Windows Update services then reboot your PC if you can't delete the Software Distribution file. You'll have to go back in and set both services back to "Automatic Delayed start" afterwards and manually start them.
^^ This worked for me. Thank You!