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2012 R2 Hyper-V server stuck at Updating your system 6% after windows update

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Last Modified: 2015-04-15
I built a new server a few days ago, 2012 R2 Standard on a 2012 R2 Standard Hyper-V host server.  Host is a PowerEdge 2950 32 GB RAM, Xeon 2.0 GHz Processors, drivers are all up to date.  (Another nearly identical virtual server on this host that has not been updated is working perfectly.)  After running all available windows updates, the virtual server gets stuck at the Hyper-V screen and says "updating your system (6%)" and never proceeds.  I had this happen on an earlier server I built so I scrapped it and started over and the exact same issue occurred again.

So far I have:
Let it run overnight to see if it completed: no change
rebooted many times: no change
booted into safe mode and safe mode with networking: no change
went into safe mode command prompt and renamed the SoftwareDistribution folder: no change
removed all network cards from Hyper-V VM and rebooted: no change

I am out of ideas.  I can always rebuild it again and avoid installing all of the updates at once but I would rather know how to fix this in case it comes up on one of our other production servers.

Anyone seen this before?  Google has very little on the issue.

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