Recently had an issue at a client site where the Software Update Point was failing to fully sync even though the updates appeared to be in the console. This was a on Server 2012 box with ConfigMgr 2012 SP1 CU2.
The error we were receiving was:
Error: The Microsoft Software License Terms have not been completely downloaded and cannot be accepted.
Client uses a proxy server for web authentication and this error appears to be specific to that situation. Turns out there is a hotfix available from Microsoft that address the issue. We applied the hotfix and everything was sync’ing fine after that.
WSUS server can’t connect to Windows Update in Windows Server 2012
Hope it helps someone else out.