Encountered an error on Windows Server 2016 today (Build 1607), where random system applications would give me “The Stub received Bad Data” on first launch. Second launch, no error. Another symptom was that Windows Update just could not get past “Downloading updates 0%”.

Turns out there are some issues after the anniversary update: https://www.reddit.com/r/sysadmin/comments/52mofs/windows_10_anniversary_edition_todays_kb3189866/.

I downloaded the recommended update from here (or here), and installed it. I also had to store the update on a remote location (share on another server) to successfully install. Had to try twice on one of the servers in question.

The problem seems to be resolved, no more bad data and Windows Update works as it should.