rgd1101 :
look at thru the event log, it might have more detail on why it failed.
It's full of:
########### AU: Initializing Automatic Updates ###########
FATAL: Failed to initialize datastore, error = 0xC8000222
WARNING: GetServiceList failed with error 0xc8000222.
WARNING: QueryRegisteredProvider failed with error 0xc8000222
# Approval type: Scheduled (User preference)
# Scheduled install day/time: Every day at 3:00
# Auto-install minor updates: Yes (User preference)
# Will interact with non-admins (Non-admins are elevated (User preference))
# Power management is turned off through policy
FATAL: Failed to initialize datastore, error = 0xC8000222
FATAL: Failed to get session from datastore, error = 0xC8000222
FATAL: Failed to Unserialize from data store, error = 0xC8000222
# WARNING: Exit code = 0xC8000222
########### AU: Uninitializing Automatic Updates ###########
WARNING: InitAUComponents Failed, will restart AU in 30 mins, error = 0xC8000222
AU Restart required....
So probably it's something with the error code: 0xC8000222. Now just to find working solution for this...