In my SCCM environment (1610 CB with last updates) I get error 0X87D20417 Auto Deployment Rule download failed.

I googled it – THIS IS NORMAL. This error appears from Microsoft side. I getting this error for Office 365 updates about a week and then successfully change status to “Success”. You must sometimes run the rule and wait).

SUP – Software Update Point

The software update point is required on the central administration site and on the primary sites in order to enable software updates compliance assessment and to deploy software updates to clients. The software update point is optional on secondary sites. The software update point site system role must be created on a server that has WSUS installed. The software update point interacts with the WSUS services to configure the software update settings and to request synchronization of software updates metadata. When you have a Configuration Manager hierarchy, install and configure the software update point on the central administration site first, then on child primary sites, and then optionally, on secondary sites. When you have a stand-alone primary site, not a central administration site, install and configure the software update point on the primary site first, and then optionally, on secondary sites. Some settings are only available when you configure the software update point on a top-level site. There are different options that you must consider depending on where you installed the software update point.