Fresh installs of Server 2012 R2 always seem to have problems with Windows Update going through an install, reboot, revert, install loop… Brian Baldock came up with this solution that seems to do the trick!
Before checking/configuring Windows Update, install the following updates in order. If one is not required just continue with the next.
1. Windows KB3021910
2. Windows KB3172614
3. Windows KB2919355