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Event ID: 10032 Source: WindowsServerUpdateServices

The server is failing to download some updates.
Events 10032 and 364 - Troubleshooting BITS Service and Proxy:
To show all the BITS jobs execute:
Bitsadmin /List /AllUsers

If list is long and many jobs are suspended, maybe proxy settings for Bits Service are not set correct. Make sure that BITS is running under LocalSystem account.

To validate correct settings, execute:

bitsadmin /Info {oneofthesejobs} /Verbose

Output shows the "Owner", "Proxy List" and "Proxy Bypass List". Your proxy should be listed. If not, the workaround is launching IE as LocalSystem using:

psexec -s -i "C:\Program Files\Internet Explorer\iexplore.exe"

and set proxy manually, or:

psexec -s "netsh winhttp set proxy {proxy}:{port}"
Our company has a SonicWALL, and we recently had issues downloading updates. Adding the WSUS server in the IPS exclusion and Gateway AV exclusion solved the issue for us.
To fix this, I had to grant Read rights to Network Services and Users for the root drive where the WSUS directory is located.
In my case, to fix this I followed these instructions:

Open a command window.
Type sc config bits start= auto
Type net stop bits && net start bits
Type net stop wsusservice && net start wsusservice
Start WSUS 3.0: Click Start, click Administrative Tools, then click Microsoft Windows Server Update Services v3.0.
Click Synchronization Results.
In the Action pane, click Synchronize Now.

Verify (Look for the corresponding error event_
Open a command window.
Type cd <WSUSInstallDir>\Tools
Type wsusutil checkhealth

Review the Application log for the most recent events from source Windows Server Update Services and event id 10030.
Make sure your folder permissions are correct, as per T708484:

1. "Users" or "NT Authority\Network Service" account: "Read" on root folder for drive where WSUS content directory resides.

2. "NT Authority\Network Service" account: "Full Control" for:
- WSUS content directory (WSUS\WsusContent)
- %windir%\Microsoft.NET\Framework\v2.0.50727\Temporary ASP.NET Files
- %windir%\Temp

In my case, following the instructions at "EventID 10021 from source Windows Server Update Services" helped me to resolve the problem.
In my case, following the steps from "Microsoft Event ID 10032 from source Windows Server Update Services" did not fix the issue.

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