Looks like Microsoft is aware of this issue as well - they have no timeline for a fix at this time. This is what they admitted on a support ticket I submitted to their Azure team:
Microsoft support case number: 120060224004201
"I was able to get in contact with the Windows Support team, and they aknowledge the issue in Windows as a reuslt of the security update.
The team is actively working on a fix to this issue, and as soon as it is available it can be deployed and the issue should no longer exist.
With the above being stated, the only current work around from the Windows team is to roll back the security updates that were applied.
I do know that you had stated that this is a production server, and that you feel it is critical to have the latest security patches applied to the server.
Unfortunately, the only work around at this time, pending the permanant fix that is being worked on, is to roll back the security update(s) that cause this issue.
I apologize for the inconvenience and and any possible frustration as a result of this, and want to thank you for your patience."