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Windows Update via Proxy
Windows 7
- References

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If your Windows operating system may not be updating properly via a proxy server, this instruction may help.

Windows 7

right click Command Prompt (under Accessories) to run it as Administrator
from the command line, to show if your proxy server is run in the background, issue

netsh winhttp show proxy

if there's no proxy, run

netsh set proxy facultyproxy.upd.edu.ph:8080

restart your machine
to confirm the retention of the entry, run as Administrator from the command line

netsh winhttp show proxy

update Microsoft Security Essentials.
ensure that your Windows Update Settings include “Install updates automatically”
run Microsoft Easy Fix
run Windows Update Troubleshooter for Windows 8.1, Windows 8, and Windows 7
restart machine and observe if Windows Update is working properly
if not, run each line below manually from the command line as Administrator

net stop wuauserv

cd %systemroot%\SoftwareDistribution
ren Download Download.old
regsvr32 %windir%\system32\wups2.dll
net start wuauserv
NET START BITS
NET START WUAUSERV
SC QUERYEX BITS
SC QUERYEX WUAUSERV

Reference

How to fix Windows Update error