Windows Server 2012 Windows Update hangs at every step

Resolution 1.
Try this at an elevated command-prompt:

netsh winhttp import proxy source=ie

Everything should now work and be nice and fast, as expected.

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Resolution 2.

Open a Command Prompt. Click Start > Run and type “cmd” then hit “OK”
Type “net stop wuauserv”. This shuts down the windows update service so you can delete the files.
Still on the Command Prompt, type “cd /d %windir%”
Type “rd /s SoftwareDistribution”
Type “net start wuauserv” to restart the service then check for updates as normal

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Resolution3.
Disable your Antivirus security software / Firewall
To do this, right click on your antivirus program in taskbar
Click on Disable product protection or a similar looking button
Disabling non-Microsoft services temporarily
Press Windows Logo key + R to open run
Type msconfig
Go to the services tab
Click on Hide all Microsoft Services