OK, so I tested your exact preset (1607 LTSB), made an image and installed.
Then installed in two cases the latest CU at this moment KB4056890, once as the pre-downloaded MSU file (the recommended way), and over WU directly (may trigger Delta download which may not work due to removed components), it worked in both cases.
I did use the latest pre-released version to save time, so please wait until tomorrow's release to try. There was a significant fix in leftovers which may have fixed it.
You can easily make a
Host Refresh with the latest cumulative update + fresh ISO + preset to get the system to an updatable state for next month, without needing to reinstall all of the apps.
Btw, when integrating servicing stacks, Adobe Flash updates, or cumulative updates, only the latest version is needed, it contains all of the fixes of the previous one.
I noticed you have the multiple of each in your preset, but I did test as you gave it to me in hopes it would trigger the issue.
Thanks.