Boot Windows server into Safe Mode
Stop following services via CMD (Command Prompt)
Net stop Wuauserv
Net stop cryptsvc
Net stop bits
Rename follow windows update folders via CMD (Command Prompt)
ren C:\Windows\SoftwareDistribution SoftwareDistribution.old
ren C:\Windows\System32\catroot2 Catroot2.old
After done rename folders, start back the follow services via CMD (Command Prompt)
Net start Wuauserv
Net start cryptsvc
Net start bits
Restart and boot to normal Windows mode
Done!