When System Center Endpoint Protection (SCEP) updates are not applying and the following errors are mentioned, Windows Update is not configured right. Let's first have a look at the errors:
WindowsUpdate.log
-CNetworkCostChangeHandler: RegisterForCostChangeNotifications: CoCreateInstance failed with error 80004002
-RegisterNetworkCostChangeNotification: Error 80004002
-Failed to get Network Cost info from NLM, assuming network is NOT metered, error = 0x80240037
-Network Cost is assumed to be not supported as something failed with trying to handls to wcmapi.dll
-CSerializationHelper: InitSerialize failed: 0x80070002
UpdatesDeployment.log
-Job error (0x87d00692) received for assignment
WUAHandler.log
-Failed to Add Update Source for WUAgent of type (2) and id {}. Error = 0x87d00692
Long story short, there was an unknown WSUS policy in-place! After changing few settings everything was working immediately.
Just make sure "Allow Automatic Updates immediate installation" is enabled, and "Specify intranet Microsoft update service location" is pointing to the ConfigMgr SUP server on port 8530/8531. Then you will be fine after all. Hope it helps!
Source: SCEP updates pushed out to clients through SCCM 2012
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