Well I have good news. The updates started work again. Not sure why. I tried several different steps. I'm not sure what worked.Here's what I did
Type following commands one by one:
net stop wuauserv
rename SoftwareDistribution SoftwareDistribution.bck
net start wuauserv
I then ran Windows update and it still would just hang. So I renamed the above backup directory to it's original name. I then went into Windows update and changed the setting to "Install Update Automatically". That didn't seem to work , so after a day I changed the setting to "Download updates but let me choose whether to install". Well last night when I went to shut off my PC Windows displayed a message that 23 updates were being installed. After it finished installing the PC shut off as normal. This morning when I started the PC I got the normal message that Windows was configuring updates and to not shut off the PC. Once done, Windows started up as normal. I then checked the Windows update history and I could see all the updates were installed successfully. So I'm not sure why it's working. I will monitor the PC.
I guess you can close this topic since things are working now.