Thanks for the reply. Sorry about the dropbox - don't know what the issue is there. I just requested a new link so hopefully this will work:
https://www.dropbox.com/s/llku18f2tc27es2/CBS.zip?dl=0
It is not a company installation - it's a church. We get the software through the microsoft donation program. Each machine is independently installed so no centralized server or rights and permissions.
I ran update a couple of times and didn't include all of the logs from today so hopefully this is everything from one session:
2016-04-17 08:51:15:008 472 8d0 Misc =========== Logging initialized (build: 7.6.7601.19161, tz: -0400) ===========
2016-04-17 08:51:15:008 472 8d0 Misc = Process: C:\Windows\system32\svchost.exe
2016-04-17 08:51:15:008 472 8d0 Misc = Module: c:\windows\system32\wuaueng.dll
2016-04-17 08:51:15:008 472 8d0 Service *************
2016-04-17 08:51:15:008 472 8d0 Service ** START ** Service: Service startup
2016-04-17 08:51:15:008 472 8d0 Service *********
2016-04-17 08:51:15:009 472 8d0 Agent * WU client version 7.6.7601.19161
2016-04-17 08:51:15:009 472 8d0 Agent * Base directory: C:\Windows\SoftwareDistribution
2016-04-17 08:51:15:009 472 8d0 Agent * Access type: No proxy
2016-04-17 08:51:15:009 472 8d0 Agent * Network state: Connected
2016-04-17 08:51:15:240 472 8d0 DtaStor Default service for AU is {00000000-0000-0000-0000-000000000000}
2016-04-17 08:51:15:250 472 8d0 DtaStor Default service for AU is {9482F4B4-E343-43B6-B170-9A65BC822C77}
2016-04-17 08:51:15:250 472 8d0 Agent WARNING: Failed to read the service id for re-registration 0x80070002
2016-04-17 08:51:15:250 472 8d0 Agent WARNING: Missing service entry in the backup data store; cleaning up
2016-04-17 08:51:17:278 472 8d0 Report CWERReporter::Init succeeded
2016-04-17 08:51:17:410 472 8d0 Report *********** Report: Initializing static reporting data ***********
2016-04-17 08:51:17:410 472 8d0 Report * OS Version = 6.1.7601.1.0.65792
2016-04-17 08:51:17:410 472 8d0 Report * OS Product Type = 0x00000004
2016-04-17 08:51:17:416 472 8d0 Report * Computer Brand = To Be Filled By O.E.M.
2016-04-17 08:51:17:416 472 8d0 Report * Computer Model = To Be Filled By O.E.M.
2016-04-17 08:51:17:417 472 8d0 Report * Bios Revision = P1.30
2016-04-17 08:51:17:417 472 8d0 Report * Bios Name = BIOS Date: 05/23/14 17:11:28 Ver: 04.06.05
2016-04-17 08:51:17:417 472 8d0 Report * Bios Release Date = 2014-05-23T00:00:00
2016-04-17 08:51:17:417 472 8d0 Report * Locale ID = 1033
2016-04-17 08:51:17:735 472 8d0 AU ########### AU: Uninitializing Automatic Updates ###########
2016-04-17 08:51:17:747 472 8d0 Service *********
2016-04-17 08:51:17:747 472 8d0 Service ** END ** Service: Service exit [Exit code = 0x240001]
2016-04-17 08:51:17:747 472 8d0 Service *************
2016-04-17 08:51:19:364 472 1b94 Misc =========== Logging initialized (build: 7.6.7601.19161, tz: -0400) ===========
2016-04-17 08:51:19:364 472 1b94 Misc = Process: C:\Windows\system32\svchost.exe
2016-04-17 08:51:19:364 472 1b94 Misc = Module: c:\windows\system32\wuaueng.dll
2016-04-17 08:51:19:364 472 1b94 Service *************
2016-04-17 08:51:19:364 472 1b94 Service ** START ** Service: Service startup
2016-04-17 08:51:19:364 472 1b94 Service *********
2016-04-17 08:51:19:365 472 1b94 Agent * WU client version 7.6.7601.19161
2016-04-17 08:51:19:365 472 1b94 Agent * Base directory: C:\Windows\SoftwareDistribution
2016-04-17 08:51:19:365 472 1b94 Agent * Access type: No proxy
2016-04-17 08:51:19:365 472 1b94 Agent * Network state: Connected
2016-04-17 08:51:21:206 472 1b94 Report CWERReporter::Init succeeded
2016-04-17 08:51:21:306 472 1b94 Report *********** Report: Initializing static reporting data ***********
2016-04-17 08:51:21:306 472 1b94 Report * OS Version = 6.1.7601.1.0.65792
2016-04-17 08:51:21:306 472 1b94 Report * OS Product Type = 0x00000004
2016-04-17 08:51:21:309 472 1b94 Report * Computer Brand = To Be Filled By O.E.M.
2016-04-17 08:51:21:309 472 1b94 Report * Computer Model = To Be Filled By O.E.M.
2016-04-17 08:51:21:310 472 1b94 Report * Bios Revision = P1.30
2016-04-17 08:51:21:310 472 1b94 Report * Bios Name = BIOS Date: 05/23/14 17:11:28 Ver: 04.06.05
2016-04-17 08:51:21:310 472 1b94 Report * Bios Release Date = 2014-05-23T00:00:00
2016-04-17 08:51:21:310 472 1b94 Report * Locale ID = 1033
2016-04-17 08:51:21:354 472 1b94 AU ########### AU: Uninitializing Automatic Updates ###########
2016-04-17 08:51:24:324 472 1b94 Service *********
2016-04-17 08:51:24:324 472 1b94 Service ** END ** Service: Service exit [Exit code = 0x240001]
2016-04-17 08:51:24:324 472 1b94 Service *************
2016-04-17 08:51:28:344 472 b30 Misc =========== Logging initialized (build: 7.6.7601.19161, tz: -0400) ===========
2016-04-17 08:51:28:344 472 b30 Misc = Process: C:\Windows\system32\svchost.exe
2016-04-17 08:51:28:344 472 b30 Misc = Module: c:\windows\system32\wuaueng.dll
2016-04-17 08:51:28:344 472 b30 Service *************
2016-04-17 08:51:28:344 472 b30 Service ** START ** Service: Service startup
2016-04-17 08:51:28:344 472 b30 Service *********
2016-04-17 08:51:28:352 472 b30 Agent * WU client version 7.6.7601.19161
2016-04-17 08:51:28:352 472 b30 Agent * Base directory: C:\Windows\SoftwareDistribution
2016-04-17 08:51:28:352 472 b30 Agent * Access type: No proxy
2016-04-17 08:51:28:352 472 b30 Agent * Network state: Connected
2016-04-17 08:51:31:516 472 1630 Report CWERReporter::Init succeeded
2016-04-17 08:51:31:516 472 1630 Agent *********** Agent: Initializing Windows Update Agent ***********
2016-04-17 08:51:31:516 472 1630 Agent * Prerequisite roots succeeded.
2016-04-17 08:51:31:516 472 1630 Agent *********** Agent: Initializing global settings cache ***********
2016-04-17 08:51:31:516 472 1630 Agent * WSUS server: <NULL>
2016-04-17 08:51:31:516 472 1630 Agent * WSUS status server: <NULL>
2016-04-17 08:51:31:516 472 1630 Agent * Target group: (Unassigned Computers)
2016-04-17 08:51:31:516 472 1630 Agent * Windows Update access disabled: No
2016-04-17 08:51:31:516 472 1630 DnldMgr Download manager restoring 0 downloads
2016-04-17 08:51:31:599 472 b30 Report *********** Report: Initializing static reporting data ***********
2016-04-17 08:51:31:599 472 b30 Report * OS Version = 6.1.7601.1.0.65792
2016-04-17 08:51:31:599 472 b30 Report * OS Product Type = 0x00000004
2016-04-17 08:51:31:603 472 b30 Report * Computer Brand = To Be Filled By O.E.M.
2016-04-17 08:51:31:603 472 b30 Report * Computer Model = To Be Filled By O.E.M.
2016-04-17 08:51:31:604 472 b30 Report * Bios Revision = P1.30
2016-04-17 08:51:31:604 472 b30 Report * Bios Name = BIOS Date: 05/23/14 17:11:28 Ver: 04.06.05
2016-04-17 08:51:31:604 472 b30 Report * Bios Release Date = 2014-05-23T00:00:00
2016-04-17 08:51:31:604 472 b30 Report * Locale ID = 1033
2016-04-17 08:51:38:506 472 b30 AU ########### AU: Uninitializing Automatic Updates ###########
2016-04-17 08:51:38:536 472 b30 Service *********
2016-04-17 08:51:38:536 472 b30 Service ** END ** Service: Service exit [Exit code = 0x240001]
2016-04-17 08:51:38:536 472 b30 Service *************
2016-04-17 08:51:41:896 472 1c24 Misc =========== Logging initialized (build: 7.6.7601.19161, tz: -0400) ===========
2016-04-17 08:51:41:896 472 1c24 Misc = Process: C:\Windows\system32\svchost.exe
2016-04-17 08:51:41:896 472 1c24 Misc = Module: c:\windows\system32\wuaueng.dll
2016-04-17 08:51:41:896 472 1c24 Service *************
2016-04-17 08:51:41:896 472 1c24 Service ** START ** Service: Service startup
2016-04-17 08:51:41:896 472 1c24 Service *********
2016-04-17 08:51:41:901 472 1c24 Agent * WU client version 7.6.7601.19161
2016-04-17 08:51:41:901 472 1c24 Agent * Base directory: C:\Windows\SoftwareDistribution
2016-04-17 08:51:41:901 472 1c24 Agent * Access type: No proxy
2016-04-17 08:51:41:901 472 1c24 Agent * Network state: Connected
2016-04-17 08:51:48:303 472 1154 Report CWERReporter::Init succeeded
2016-04-17 08:51:48:303 472 1154 Agent *********** Agent: Initializing Windows Update Agent ***********
2016-04-17 08:51:48:303 472 1154 Agent * Prerequisite roots succeeded.
2016-04-17 08:51:48:303 472 1154 Agent *********** Agent: Initializing global settings cache ***********
2016-04-17 08:51:48:303 472 1154 Agent * WSUS server: <NULL>
2016-04-17 08:51:48:303 472 1154 Agent * WSUS status server: <NULL>
2016-04-17 08:51:48:303 472 1154 Agent * Target group: (Unassigned Computers)
2016-04-17 08:51:48:303 472 1154 Agent * Windows Update access disabled: No
2016-04-17 08:51:48:303 472 1154 DnldMgr Download manager restoring 0 downloads
2016-04-17 08:51:48:390 472 1c24 Report *********** Report: Initializing static reporting data ***********
2016-04-17 08:51:48:390 472 1c24 Report * OS Version = 6.1.7601.1.0.65792
2016-04-17 08:51:48:390 472 1c24 Report * OS Product Type = 0x00000004
2016-04-17 08:51:48:395 472 1c24 Report * Computer Brand = To Be Filled By O.E.M.
2016-04-17 08:51:48:395 472 1c24 Report * Computer Model = To Be Filled By O.E.M.
2016-04-17 08:51:48:396 472 1c24 Report * Bios Revision = P1.30
2016-04-17 08:51:48:396 472 1c24 Report * Bios Name = BIOS Date: 05/23/14 17:11:28 Ver: 04.06.05
2016-04-17 08:51:48:396 472 1c24 Report * Bios Release Date = 2014-05-23T00:00:00
2016-04-17 08:51:48:396 472 1c24 Report * Locale ID = 1033
2016-04-17 08:52:26:911 472 1c24 AU ########### AU: Initializing Automatic Updates ###########
2016-04-17 08:52:26:911 472 1c24 AU # Approval type: Scheduled (User preference)
2016-04-17 08:52:26:911 472 1c24 AU # Scheduled install day/time: Every day at 3:00
2016-04-17 08:52:26:911 472 1c24 AU # Auto-install minor updates: Yes (User preference)
2016-04-17 08:52:26:911 472 1c24 AU # Will interact with non-admins (Non-admins are elevated (User preference))
2016-04-17 08:52:26:917 472 1c24 AU Setting AU scheduled install time to 2016-04-18 07:00:00
2016-04-17 08:52:26:917 472 1c24 AU Successfully wrote event for AU health state:0
2016-04-17 08:52:26:918 472 1c24 AU Initializing featured updates
2016-04-17 08:52:26:918 472 1c24 AU Found 0 cached featured updates
2016-04-17 08:52:26:918 472 1c24 AU Successfully wrote event for AU health state:0
2016-04-17 08:52:26:918 472 1c24 AU AU setting pending client directive to 'Install Approval'
2016-04-17 08:52:26:919 472 1c24 AU Successfully wrote event for AU health state:0
2016-04-17 08:52:26:920 472 1c24 AU AU finished delayed initialization
2016-04-17 08:52:31:916 472 76c Report REPORT EVENT: {5B31053F-3E12-41B9-B9A8-E17CF4414D7F} 2016-04-17 08:52:26:918-0400 1 188 102 {00000000-0000-0000-0000-000000000000} 0 0 AutomaticUpdates Success Content Install Installation Ready: The following updates are downloaded and ready for installation. This computer is currently scheduled to install these updates on Monday, April 18, 2016 at 3:00 AM: - Update for Windows 7 for x64-based Systems (KB3123862)
2016-04-17 08:52:41:920 472 1c24 AU Launched new AU client for directive 'Install Approval', session id = 0x1
2016-04-17 08:52:41:926 5564 b74 Misc =========== Logging initialized (build: 7.6.7601.19161, tz: -0400) ===========
2016-04-17 08:52:41:926 5564 b74 Misc = Process: C:\Windows\system32\wuauclt.exe
2016-04-17 08:52:41:926 5564 b74 AUClnt Launched Client UI process
2016-04-17 08:52:41:943 5564 b74 Misc =========== Logging initialized (build: 7.6.7601.19161, tz: -0400) ===========
2016-04-17 08:52:41:943 5564 b74 Misc = Process: C:\Windows\system32\wuauclt.exe
2016-04-17 08:52:41:943 5564 b74 Misc = Module: C:\Windows\system32\wucltux.dll
2016-04-17 08:52:41:943 5564 b74 CltUI AU client got new directive = 'Install Approval', serviceId = {9482F4B4-E343-43B6-B170-9A65BC822C77}, return = 0