Navigate to HKLM>Software>Policies>Microsoft>Windows>WindowsUpdate and notice the entries: “WUServer”=”http://SBSServer:8530″ & “WUStatusServer”=”http://SBSServer:8530″.
These tell Windows Update where to find the latest updates. Obviously if WSUS isn’t running on your server, it’s not going to have it.
Solution was to remove the entire key “WindowsUpdate” key from the registry at HKLMSoftwarePoliciesMicrosoftWindows.
Make sure to backup the key by exporting.
Once that’s done, restart the Windows Update Service within the services mmc.
Now try to get the updates. If everything else is good to go, then updates will process and install.