Not sure if it is significant but in the LocationServices.log I see these differences:
Update gets downloaded to computer:
Distribution Point='net:http://wsus.ds.download.windowsupdate.com/d/msdownload/update/software/secu/2016/12/windows6.1-kb3207752-x64_47a878b920c5094a0e73c053e8f602df1fbb8286.cab',Locality='REMOTE', DPType='WUMU', Version='0', Capabilities='<Capabilities/>', Signature='', ForestTrust='FALSE', LocationServices 20.12.2016 21:23:09 3868 (0x0F1C)
Update does not download to computer:
Distribution Point='net:http://wsus.ds.download.windowsupdate.com/c/msdownload/update/software/secu/2016/12/windows8.1-kb3205401-x64_321b77e058ef0377d84e6f0d25b360a05a363ad3.cab',Locality='WUMU', Version='0', Capabilities='<Capabilities/>', Signature='', ForestTrust='FALSE', LocationServices 20.12.2016 21:38:37 2180 (0x0884)