Failed to Sync Update. Error: The Microsoft Software License Terms have not been completely downloaded and cannot be accepted.

I was seeing the above error in the Configuration Manager 2012 SP1 wsyncmgr.log in a customer environment and I suspected this was as a result of SQL services being interrupted during the WSUS syncronisation process – which is never a good thing.  Despite trying to remove classifications and removing/reinstalling the SUP role the problem persisted.  When I loaded up the WSUS console and filtered for all updates I noticed that around 12 updates were showing that their content download (the EULA) had not been successfully downloaded.  I simply highlighted the affected updates, right clicked and chose to “Retry Download” and these changed to Pending Download and eventually all was OK.  A re-sync in Configuration Manager then resulted in a happy wsyncmgr.log and a successful sync event.

There is apparently a hotfix available for this issue which might be worth a try if you encounter this issue when proxy credentials are required;

http://support.microsoft.com/kb/2838998

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