We currently have devices that have all outbound traffic blocked with the exception of certain applications such as Google Chrome, Internet Explorer, etc. This however limits access to Windows Update i.e. they cannot connect to Windows Update. If i were to allow complete outbound access to C:\Windows\System32\svchost.exe, it works.
What are the implications of allowing complete outbound access to C:\Windows\System32\svchost.exe?
The reason the devices are completely locked down is so that only approved applications are allowed to connect to the internet.