Report bug to MS immediately. This is the second time I've seen a problem with this patch causing unintended failures. The other case was with a machine running the Korean version of Windows Server where for some reason the GUID value was being translated into Korean unicode characters. Really weird.
If it is broken, the only thing I can suggest as a remedy for now is to roll back the patch.
I'll be very curious to see where all these threads lead. I'm sure there is a simple logic flaw in the agent or fed server code somewhere that causes this.