Posting this for the benefit of everyone who comes across this issue.
Environment: Windows Server 2016 RDS
Issue: After applying Windows updates, Remote Desktop Management service fails to start.
Errors:
eventID 7036 - The Remote Desktop Management service entered the stopped state.
event ID 1: The Remote Desktop Management service failed to start. Error code: 0x88250003
Fix:
Uninstall KB4493470 Windows update and reboot. It takes about an hour to uninstall and apply rollback so don't panic when you see status stuck on "Working on updates 100% complete"
Hope this helps.