Hi DanyalAfzal-3107,
It maybe the problem of communication between the Windows Update Agent and ClientWebService and SimpleAuthWebService virtual directories on the WSUS computer.
This can occur for several reasons. These include port configuration, proxy configuration, firewall issues, and network connectivity, so we could follow these factors to troubleshoot the issue.
Detailed steps could be referred to this article:
https://learn.microsoft.com/en-us/troubleshoot/mem/configmgr/troubleshoot-software-update-scan-failures#scan-failures-related-to-http-time-out-or-authentication
If the response is helpful, please click "Accept Answer" and upvote it.
Note: Please follow the steps in our documentation to enable e-mail notifications if you want to receive the related email notification for this thread.