SVCHOST memory leak and 100% single thread CPU usage

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I have an old Dell Windows 7 SP1 install disk being used to create images for, well, dell computers. The problem is that after installing and kicking off Windows update, one of the SVCHOST processes goes nuts and I can't install any updates.
Microsoft claims to have fixed the issue with [1]KB3050265 but this fails to fix it.
I have also tried running various scripts found online 

net stop wuauserv
net stop bits
net stop cryptsvc

deltree /Y %systemroot%\SoftwareDistribution_Old
ren %systemroot%\SoftwareDistribution SoftwareDistribution_Old

regedit /s “WSUSReset.reg”

REGSVR32 /s WUAUENG.DLL
REGSVR32 /s WUAUENG1.DLL
REGSVR32 /s ATL.DLL
REGSVR32 /s WUCLTUI.DLL
REGSVR32 /s WUPS.DLL
REGSVR32 /s WUPS2.DLL
REGSVR32 /s WUWEB.DLL

net start wuauserv
net start bits
net start cryptsvc

wuauclt.exe /resetauthorization /detectnow

I honestly have no way of fixing this. Really frustrating as it's difficult to find a Windows 7 disk that will work with the Dell OEM keys.

  1. ↑ https://support.microsoft.com/en-us/kb/3050265
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