"I am not 100% sure how to answer your question. It is setup to do Single GroupUpdate Provider IP and the IP is the SEPM Server's IP."
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SEPM is already providing content for clients. If all the clients are on a local LAN, there are no bandwidth limitations, or clients on the other side of WAN links, and SEPM server load and performance are all OK, I would not use GUP.
Setting SEPM server as GUP as well is not recommended.
It's my opinion to uncheck 'Use Live Update Server.' SEPM server provides client management, and also WAN BW resource conservation by having only SEPM server get updates, then publish updates for clients. This does create a single point of failure in the SEPM. I've intentionally crashed the server and had it back up the same day. DR instructions for recovery are pretty simple.
Are clients all in the same group? Above sylink log seems to indicate only one group - Full Time. Do you have different groups with different policies? Are you using Windows firewall, SEP firewall, or no firewall?
Are clients on the same VLAN?
A quick cheat to see if clients can reach server: http://<ServerIP>:8014/content/contentinfo.txt will show content monikers.
How full is HD on server?
My actions are to restart workstation if possible, or restart client service. (SMC -stop, SMC -start)
Restart client service on GUP, waiting at least 2 minutes between stop and start.
Copy a .JDB file to \incoming\ folder (Third party updates must be enabled, and this is not invasive - user won't notice, or be alerted to update)
Go to client and run the .exe update.
And sylink log file is usually very helpful.
Line 1235:...GUP type: Single Group Update Provider last GUP type: Invalid Group Update Provider type
Request for content is sent to SEPM to create delta content. OK. Some content will always come from SEPM regardless of GUP presence.
Then this client attempts to get content from GUP, which is SEPM server...and failing.
I would start by unchecking "Use Group Update Provider" and waiting for about 2 hours.