I really don't know but will share that this sorted itself over 2 weeks. Microsoft seems to think this is OK? I disagree. I didn't have time to work on it so I let the machine just keep trying.
In parting I did NOT install any Norton, Mcafee, Kaspersky because or prior problems where it breaks WU and WR (windows update and restore.)
Many of the 108 updates to Windows 7 that were finally downloaded (after 17hrs) failed to install. Those that did install were those for applications like MS Office and Silverlight. None of the security updates for Windows 7 itself were installed. The Windows 7 was recently restored from a system image backup. Can anyone shed some light on why this is happening?

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