I turned off the sharing of updates and it's all good here. BUT a clean install may require a many hundred GB download of recent patches so you may have misinterpreted what is going on.
As to drivers, I use drivers from the maker since Microsoft while they are doing better is not where I search for drivers.
So I just did a clean install of Windows 10 ver.1607(Anniversary Update) and Service Host: Local System was consuming so much bandwidth from the Wi-Fi network that it did not even let my windows phone have a stable internet access. Isolating the different services under Service Host: Local System it was observed that Delivery Optimization is the culprit and hence to resolve the issue as suggested by multiple forums: "Disable: Updates from more than one place in Updates and Security" to my surprise the Delivery Optimization service did not even flinch. The only thing that provided a temporary fix was to set the wireless connection as metered. But due to that I cannot obtain device drivers etc. from Windows Update. Even tried installing Windows again but the experience was still downright pathetic. Need urgent help with this issue!