2 GB of free space.
Windows Update downloads 300 MB update.
Now there's 1.2 GB of free space.
Where did it go?
The system created no shadow copies or restore points.
The 290 MB Windows10.0-KBXXXX-x64.cab has no ADS.
But by deleting the .cab I get 580 MB back.
Wtf? How? Why?
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I don't think so. That would mean the extra space wouldn't be available all the time. Also it's on very slim Server installation so there's very little to interfere with Windows Update.
I continue to investigate...