The wait is over, as Microsoft has already confirmed they’re working on a fix for KB3194496, which has been failing to install, the software giant has released a script as the fix today and is now available for download.
Affected users need to run it on their computers without need to follow the workaround, which involves deletion of XblGameSave scheduled tasks and related keys in the registry. If the workaround has not worked for you, now its time for you to try the fix, which should resolve the installation issues of KB3194496 Cumulative update.
Windows 10 1607 script fix to unblock KB3194496 update
Download Windows 10 1607 Script fix that unblocks KB3194496 update for Windows Insiders as well as for some affect users using stable build as well from here.