WSUS 4.0 stop working after Update

These event log errors occur after the update KB3159706 is applied.

Login failed for user 'NT AUTHORITY\NETWORK SERVICE'. Reason: Failed to open the explicitly specified database 'SUSDB'. [CLIENT: <named pipe>]

and…

WebHost failed to process a request.
Sender Information: System.ServiceModel.ServiceHostingEnvironment+HostingManager/45479559
Exception: System.ServiceModel.ServiceActivationException: The service '/ClientWebService/client.asmx' cannot be activated due to an exception during compilation. The exception message is: This collection already contains an address with scheme https. There can be at most one address per scheme in this collection. If your service is being hosted in IIS you can fix the problem by setting 'system.serviceModel/serviceHostingEnvironment/multipleSiteBindingsEnabled' to true or specifying 'system.serviceModel/serviceHostingEnvironment/baseAddressPrefixFilters'.
Parameter name: item. ---> System.ArgumentException: This collection already contains an address with scheme https. There can be at most one address per scheme in this collection. If your service is being hosted in IIS you can fix the problem by setting 'system.serviceModel/serviceHostingEnvironment/multipleSiteBindingsEnabled' to true or specifying 'system.serviceModel/serviceHostingEnvironment/baseAddressPrefixFilters'.
Parameter name: item
at System.ServiceModel.UriSchemeKeyedCollection.InsertItem(Int32 index, Uri item)
at System.Collections.Generic.SynchronizedCollection`1.Add(T item)
at System.ServiceModel.UriSchemeKeyedCollection..ctor(Uri[] addresses)
at System.ServiceModel.ServiceHost..ctor(Type serviceType, Uri[] baseAddresses)
at System.ServiceModel.Activation.ServiceHostFactory.CreateServiceHost(Type serviceType, Uri[] baseAddresses)
at System.ServiceModel.Activation.ServiceHostFactory.CreateServiceHost(String constructorString, Uri[] baseAddresses)
at System.ServiceModel.ServiceHostingEnvironment.HostingManager.CreateService(String normalizedVirtualPath, EventTraceActivity eventTraceActivity)
at System.ServiceModel.ServiceHostingEnvironment.HostingManager.ActivateService(ServiceActivationInfo serviceActivationInfo, EventTraceActivity eventTraceActivity)
at System.ServiceModel.ServiceHostingEnvironment.HostingManager.EnsureServiceAvailable(String normalizedVirtualPath, EventTraceActivity eventTraceActivity)
--- End of inner exception stack trace ---
at System.ServiceModel.ServiceHostingEnvironment.HostingManager.EnsureServiceAvailable(String normalizedVirtualPath, EventTraceActivity eventTraceActivity)
at System.ServiceModel.ServiceHostingEnvironment.EnsureServiceAvailableFast(String relativeVirtualPath, EventTraceActivity eventTraceActivity)
Process Name: w3wp
Process ID: 5660

I have tested a lot, service restart, wsusutil.exe check health,
also added following “..multipleSiteBindingsEnabled=”true” /> into the web.config file. It didn’t work. Until I found the URL to KB3159706 (Update enables ESD decryption provision in WSUS in Windows Server 2012 and Windows Server 2012 R2).

Hint:
Don’t add only the following line like displayed here (URL)
<serviceHostingEnvironment multipleSiteBindingsEnabled=”true”/> wsus service has already one option in the config file. so add it into the existing serviceHostingEnvironment tag.

</bindings>
   <serviceHostingEnvironment aspNetCompatibilityEnabled="true" multipleSiteBindingsEnabled="true" />
</system.serviceModel>

Detailed solution from Microsoft:
KB3159706

If you get an 500 Internal Server Error, then you have an error in your web.config. (Review the XML file)

One extra (maybe only in my environment)
I had to remove and install the WSUS feature.
Only when I did that, I could deploy updates to the clients.