Event Error:
Content file download failed.
Reason: The operation being requested was not performed because the user has not logged on to the network. The specific service does not exist. (0x800704DD)
WSUS error:
The files for this update failed to download. The update can be approved but will not be available to computers until the download is complete. Click Retry Download to start the download again.
Solution:
1. Confirm log on user for WSUS services and BIT services is correct.
WSUS service:
User: NT AUTHORITY\NetworkService
Pass: Blank
Bit services:
User: Local System account (must run local system account)
2. After change the log on user, Restart both Services and retry download.