This article may interest you, if Office 365 Desktop Setup is unable download and install software updates from Windows Update or from Microsoft Update in an Office 365 environment.
You encounter this issue, if any any of the followinfg condition is true:
– Access to Windows Update or to Microsoft Update is blocked by a Group Policy or other security configuration
– A Windows Update component must be installed on the computer before the updates can be completed.
Office 365 Desktop Setup uses Windows Update to install software updates that are required to connect to Office 365.
To resolve this issue, Microsoft KB2392274 recommends, you try one or more of these methods:
1. Verify the Group Policy setting
2. Verify that you can connect to Windows Update