I bumped into this error today and I was scratching my head to troubleshoot the error. I have done the WSUS client diagnostic test, turned off the firewall, make sure there are no GPO overwriting the WU server.
Finally I found a similar case which discussed in the forum. The discussion says that the Windows Update ”Target Group” is enabled and corrupted. Therefore, I refer the registry (HKLM\Software\Policies\Microsoft\Windows\WindowsUpdate) of those good computers and do a comparison. I found out that those good computers doesn’t have the “Target Group” registry key and hence I delete it from the bad computers. Bravo~!!! it works afterward. =)
Lastly, I found out that those bad computers were managed by Windows Intune. Windows Intune did patch management and this is the reason why those computers failed with the error 0x80244007.