Updated another client on Windows 10 to anniversary update, also running 8310 LMI client - now showing update service is disabled (which iti is not)
Check your settings using the web browser interface and check out this LMI link
Goodness gracious me! That worked. I ignored the 'couldn't identify the problem' message, and restarted anyway. LogMeIn now shows green!!
That means it's Microsoft not resetting things correctly. Now to do the other 14+ PCs ...
Well I guess I just need to figure this out on my own. I disabled all settings in Group policy and can now manage the server with Logmein. Just testing a few settings now to see if it will reboot the server with the updates.