Windows 10 feature Updates Deployment Issue - ESD Files not download

I am using PM 2.1.6 (soon to be replaced with latest version) and WSUS 2012 R2. I am trying to install the Windows 10 feature update for 1909 on my Windows 10 1809 systems. Its imported into WSUS and the files show as downloaded. I can successfully deploy this update to machines using WSUS however when I try and deploy through Patch manager , the ESD file form the update is never downloaded to the client and hence the installation fails. The patch consists of two files:

  • WindowsUpdateBox.exe
  • The ESD file (4 GB)

The servicing stack is up to the latest for Windows 10 1809. When I look at my windows update client logs I see the update attempt:

2021/03/09 15:54:35.7602760 8712  5964  Handler         Starting Windows Setup with command line = C:\Windows\SoftwareDistribution\Download\af6ed79e244e92d783d89f19beb1a672\WindowsUpdateBox.exe" /ClassId 77a3ca76-8436-4b93-bbff-0dd4c7ac16b9 /ReportId {8CBEAC10-A818-4C54-B461-A2EAFAD7F592}.200 /PreDownload /Update /ClientId e670d37e-f8ac-4992-9749-38984ad3fe6e /CorrelationVector e8c7uPb8+UmVdj5n.1.0.0.3"

This failed because the ESD file was never downloaded. I re-run the job and the 2nd time the ESD file gets downloaded. 

Any ideas?