Why am I seeing “Http: Response, HTTP/1.1, Status: Bad gateway, URL: http://Exception_URL/ClientWebService/client.asmx” when deploying Software Updates?

I’m using Microsoft Forefront Threat Management Gateway as a Web Proxy Auto-Discovery Protocol (WPAD) server.

I’ve updated the WPAD server to add proxy exception entries, but now when I try to deploy Software Updates I’m seeing the following:

Http: Response, HTTP/1.1, Status: Bad gateway, URL: http://Exception_URL/ClientWebService/client.asmx

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