Within the VM, a short while ago I checked for Windows update. There were few updates available, two of them were Security update for Microsoft.Net Framework 4.5.2, they both failed.
Googled for the issue, then uninstalled Microsoft.Net Framework 4.5.2 and tried to re-install as suggested on Microsoft forum, but it didn't install. It cited an issue with Windows Installer Service. I checked Windows Installer service and it was started as Manual. I stopped and restarted the service but still installation failed.
These same two security updates for .Net Framework 4.5.2(KB3074230 and KB3074550) were successfully installed on my physical machine.
Looks like something happened while removing all the programs using "Add/Remove" within the VM.