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Windows 10 Updates Through WSUS, All Updates Not Applicable/Not Installed

We have a few Windows 10 machines we are testing for an eventual roll out. I am running into a weird issue with Windows Updates.

We are deploying a Windows 10 v1703 image. The image works fine however updating is not working.

The PCs WILL accept our 3rd party updates from WSUS, no problems. It determines the updates it needs and installs them.

However, normal Microsoft Updates ARE NOT identified/installed. The PC DOES check into WSUS, but shows with 0 updates installed (not including 3rd party) and 0 needed. On the client side, they get a message as follows:

"There were some problems installing updates, but we'll try again later. If you keep seeing this and want to search the web or contact support for information, this may help: (0x80248014)"

I have tried:

- Clearing out the SoftwareDistribution folder and restarting all Update services.

- Verified all WSUS GP settings are correct. Also verified via registry.

Any thoughts/suggestions?