The promised fix has arrived! Last week, some users were having problems installing the latest Windows 10 PC build 14393.222. Microsoft acknowledged the issue and said that they are working on the fix.
Now, ZDNet reports that Microsoft released the fix to the issue. The 52KB script will modify your registry specifically on Xbox Scheduled Task registry key that blocks kb3194496 from installing. Once the script is installed, it will now unblock 14393.222 from installing. Download the script below.
Windows 10 1607 Script fix to unblock update for Windows Insiders