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WSUS Failure - Error Code 80246003

We have approximately 1000 servers in our environment, 29 of them have recently started failing with the same error code - 80246003. They're all either Windows 8 or Server 2012 machines.

Our WSUS server is running Windows Server 2008 R2 SP1 with WSUS 3.2.7600.256.

We have installed both KB2720211 and KB2734608.

As this is happening on multiple machines and multiple updates, I assume the issue is with our WSUS server. We have also tried local client machine fixes such as:

- Stopping WSUS, BITS and Cryptographic Services; renaming the WSUS download folders; starting the services back up
- Re-registering WSUS DLL's
- Restarting client machines
- Restarting WSUS server
- Reinstalling the hotfixes listed above
- Using the WSUS troubleshooting tool to automatically "fix" the error(s)
- Installing one update at a time

Nothing we try seems to work!

When we do try to download and install the updates on the client machines, the downloads will reach 100%, we will then instantly see the failure message.

Below is an excerpt from one of the client machines:
2013-03-04    12:54:05:479     808    11cc    DnldMgr    BITS job {E110041E-D0C4-4B50-80CD-3E5C31446165} completed successfully
2013-03-04    12:54:05:479     808    11cc    DnldMgr    CUpdateDownloadJob::GetNetworkCostSwitch() Neither unrestricted or restricted network cost used, so using current cost
2013-03-04    12:54:05:605     808    11cc    Misc    Validating signature for C:\Windows\SoftwareDistribution\Download\8dd22c97bdd5dd4599b929bc336fbd14\9c2f30ecd60456234bd9a2e723a9dded7681b95a:
2013-03-04    12:54:05:621     808    11cc    Misc     Microsoft signed: Yes
2013-03-04    12:54:05:621     808    11cc    DnldMgr      Download job bytes total = 5265936, bytes transferred = 5265936
2013-03-04    12:54:05:636     808    1728    DnldMgr    ***********  DnldMgr: New download job [UpdateId = {EA199A45-0A17-4F48-8CA3-35481E2D7472}.102]  ***********
2013-03-04    12:54:05:636     808    1728    DnldMgr    WARNING: Update validation failed, error 80246003.
2013-03-04    12:54:05:636     808    1728    DnldMgr    FATAL: DM:CAgentDownloadManager::DownloadUpdate: pDownloadJob->Init failed with 0x80246003.
2013-03-04    12:54:05:636     808    1728    DnldMgr    WARNING: Got error (hr = 80246003) starting update 0 in call 207. Notifying call.
2013-03-04    12:54:05:636     808    1728    DnldMgr    Error 0x80246003 occurred while downloading update; notifying dependent calls.
2013-03-04    12:54:05:636     808    3c4    AU    >>##  RESUMED  ## AU: Download update [UpdateId = {514453AD-18DF-4347-9D4F-DEA5004D216C}]
2013-03-04    12:54:05:636     808    3c4    AU      # WARNING: Download failed, error = 0x80246003
2013-03-04    12:54:05:655     808    3c4    AU    #########
2013-03-04    12:54:05:655     808    3c4    AU    ##  END  ##  AU: Download updates
2013-03-04    12:54:05:655     808    3c4    AU    #############
2013-03-04    12:54:05:670     808    1728    DnldMgr    FATAL: DM:CAgentDownloadManager::LoadUpdateMetadataFromDatastore: GetUpdates failed with 0x80248007.
2013-03-04    12:54:05:670    3456    b2c    WUApp    FATAL: Failed to call GetUpdateData for updates, hr=80248007, lcid=00000409
2013-03-04    12:54:05:670    3456    b2c    WUApp    WARNING: Failed to load the update list, error 80248007
2013-03-04    12:54:05:670    3456    b2c    WUApp    WARNING: Failed to populate update list with error 80248007

The client machines are definitely contacting the WSUS server.

There are no errors in the WSUS server event viewer.

What else could we try?

-Peter


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