In the case of the Cumulative Update for Windows Server 2016: September 26, 2016 (KB3192366), you should first install the latest Servicing Stack Update for Windows 10 Version 1607: August 23, 2016 as a prerequisite (KB3176936).For most of the options below, you need the files containing the update packages.For example, the first cumulative update for Nano Server was released on September 26, 2016 with KB4093120.With this and subsequent cumulative updates, we provide various options for installing these updates on Nano Server.If you have a running Nano Server VM or physical host and you've downloaded the file for the update, you can use the DISM tools to apply the update while the operating system is online.You will need to copy the file locally on the Nano Server or to an accessible network location.Restoring your i Pod erases all of its data and settings and returns it to the state it was in when you first got it.
To avoid a version mismatch between the optional packages and base operating system, you should install the latest cumulative update immediately after installing any optional packages and before restarting the server.
The following options are presented in no particular order of preference - use the option that makes the most sense for your environment.
Note When using the DISM tools to service Nano Server, you must use a version of DISM that is the same as or newer than the version of Nano Server you're servicing.
If you're applying a servicing stack update, make sure to restart the server after applying the servicing stack update before applying additional updates.
Note If you've created the Nano Server VHD or VHDX image using the New-Nano Server Image cmdlet and didn't specify a Max Size for the virtual hard disk file, the default size of 4GB is too small to apply the cumulative update.