We do not use SCCM for system updates for our windows 7 TS, just our Windows 10. Our Windows 7 TS has been working for years before I did the 1607 upgrade. The only system updates we have deployed to the system is Windows 10 cumulative, Security and Virus Definitions. None of those updates are deployed to a Windows 7 device, as we use a WSUS for Win7. I do not have an option to redeploy the TS to the DP as all the packages are showing as being distributed. I have even rebuilt the DP role on the DP with no luck. I can run the TS when the computer has an older client, so I'm thinking there is an issue with the new SCCM client. Still waiting to hear back from MS on if they have found anything in their code.