Failed to sync update. Error The Microsoft Software License Terms have not been completely downloaded and cannot be accepted

I had this tricky problem last week.

ConfigMgr 2012 SP1 CU2
Windows 2012
SQL 2012

NO Proxy between ConfigMgr server and Windows Updates sites

I had 3 independent (or so I thought) issues:

1. I could not browse to \\ConfigMgr_server\F$ from remote computer
2. I could connect to http://ConfigMgr_server/reports from a remote computer but the page did not render properly and reports could not run. This was OK runninghttp://localhost/reports locally on the server. I also could not run reports from a remote Admin console
3. Updates issue: Failed to sync update. Error The Microsoft Software License Terms have not been completely downloaded and cannot be accepted.

I couldn't understand as I had deployed the exact same combination of products several times before with no issue. Then I found this KB

http://support.microsoft.com/kb/2811670

The KB desribes this issue:

When you use a VMWare guest system, some SCSI drives are recognized as removable storage. This can affect applications that are installed on nonsystem drives.

Symptoms like mine:

Windows Cannot Access \\Servername\Sharename

You cannot access an Internet Information Services (IIS) website that is hosted on a removable storage device

The WSUS content directory is not accessible.
System.UnauthorizedAccessException: Access to the path 'drive:\WSUS\WsusContent\anonymousCheckFile.txt' is denied.
The server is failing to download some updates.

These issues were resolved by a Cumulative Update released in April 2013, and then I realised why I was having the issue. I had been unable to fully patch my Windows Server 2012 box (due to customer network constraints).

I installed the update and it resolved problems 1 & 2 instantly. I then re-installed WSUS and my Software Update Point - problem 3 resolved, and all updates successfully synced.