Windows Update hangs and new updates are uninstalled after a restart

Symptoms

Consider the following scenario:
  • You have a computer that is running Windows Server 2012 R2, Windows 8.1, Windows Server 2012, or Windows 8.
  • You install updates from Windows Update.
  • You restart Windows when you are prompted to do this.
In this scenario, you see the following message during the restart process:

Working on updates
13% complete
Don't turn off your computer

This is an expected message. However, the system appears to stop responding (hangs) for about 15 minutes. After this time, the system does restart. However, the updates that you just installed are now uninstalled.

Additionally, an entry that resembles the following may be logged in the CBS.log file under %SystemRoot%\Logs\CBS:

Shtd: Timed out waiting for shutdown processing to complete - no progress detected in last 900000 milliseconds 

Cause

This issue occurs because the Trusted Installer service did not finish the installation process within the default time-out period of 15 minutes.

Workaround

To work around this issue, set the time-out value to a larger value in the registry, and then reapply the hotfix. To do this, follow these steps: 
  1. Start Registry Editor.
  2. Locate the following subkey:

    HKLM\System\CurrentControlSet\Services\TrustedInstaller
  3. Right-click the TrustedInstaller key, and then click Permissions.
  4. Grant the Full Control user right to the Administrators group.
  5. Change the BlockTimeIncrement value to 2a30 (Hexadecimal).

    Note This change sets the time-out value to three hours. This should be sufficient for most situations. However, you may have to try a larger value in your environment.
  6. Restart the server, and then apply the hotfix again.

Status

Microsoft has confirmed that this is a problem in the Microsoft products that are listed in the "Applies to" section.
Properties

Article ID: 3064434 - Last Review: 15 May 2015 - Revision: 1

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