LawrenceGarvin

Quite likely what happened here is that when renaming the server you 'broke' the installation of SQL Server that ConfigMgr is trying to connect to. Use this MSDN Article: Rename a Computer That Hosts a Standalone Instance of SQL Server to repair your SQL Server instance, and then reboot.

Which of the items listed in the tooltip are true?

If the update has not yet been installed on the client system, removing the package (and/or files from the DP), would certainly disrupt the attempt to install the update. After removing the package, you probably would also want to force a client software updates scan to make sure that it knows that the package is no longer available.

Does the account being used have Delete permissions on the class and instance? Sounds like it has Create permissions, and you got the appropriate response for that attempt. The occasional Provider-to-Database connection issue is likely completely separate.