Windows Update Error 80240037 - "Unsupported Hardware" with Windows 7 or Windows 8.1 and Kaby Lake Processors
Each new generation of processor requires both driver support from component manufacturers and often, platform support from Microsoft.
As Windows 7 is now around 8 years old, as of 2017, Microsoft have decided not to add Kaby Lake support into Windows 7. Support is also not available for Windows 8.1 or Windows Server 2012 R2.
Additionally, supported video drivers are not available from Intel for the Kaby Lake on-chip graphics engine for Windows 7 or Windows 8.1
This issue has been confirmed by Microsoft, here:
"Because of how this support policy is implemented, Windows 8.1 and Windows 7 devices that have a seventh generation or a later generation processor may no longer be able to scan or download updates through Windows Update or Microsoft Update."
We recommend that customers upgrade to Windows 10 as soon as possible. If you need transition assistance from Stone, please contact your account manager.
Alternatively, if you need to run Windows 7 or Windows 8.1, perhaps to support an older application, there are two work-arounds: