500 Error accessing dashboard - System.Web.HttpCompileExcept

I have a Sitefinity 7.0 project I am developing that has been working fine until just this week. Now I get a 500 error everytime I try to access the Dashboard or any other backend page. The login works, but the desired page always fails, whether running in VS2013 or published and run from IIS 7

I have rolled back all code and data changes to well before when the site was trouble free. I'm really desperate to find the cause of the issue. The production site hosted on WS2008R2 is still trouble free, but I need to continue development on my Windows 8.1 box.

Log file details:

Message: HandlingInstanceID: 90fbe7e3-4606-4131-bbec-cfc0d6c34060
An exception of type 'System.Web.HttpCompileException' occurred and was caught.
-------------------------------------------------------------------------------
11/18/2015 12:36:19
Type : System.Web.HttpCompileException, System.Web, Version=4.0.0.0, Culture=neutral, PublicKeyToken=b03f5f7f11d50a3a
Message : External component has thrown an exception.
Source : System.Web
Help link :
Results : System.CodeDom.Compiler.CompilerResults
SourceCode :
WebEventCode : 0
ErrorCode : -2147467259
Data : System.Collections.ListDictionaryInternal
TargetSite : System.CodeDom.Compiler.CompilerResults Compile()
HResult : -2147467259
Stack Trace :    at System.Web.Compilation.AssemblyBuilder.Compile()
   at System.Web.Compilation.BuildProvidersCompiler.PerformBuild()
   at System.Web.Compilation.BuildManager.CompileWebFile(VirtualPath virtualPath)
   at System.Web.Compilation.BuildManager.GetVPathBuildResultInternal(VirtualPath virtualPath, Boolean noBuild, Boolean allowCrossApp, Boolean allowBuildInPrecompile, Boolean throwIfNotFound, Boolean ensureIsUpToDate)
   at System.Web.Compilation.BuildManager.GetVPathBuildResultWithNoAssert(HttpContext context, VirtualPath virtualPath, Boolean noBuild, Boolean allowCrossApp, Boolean allowBuildInPrecompile, Boolean throwIfNotFound, Boolean ensureIsUpToDate)
   at System.Web.Compilation.BuildManager.GetVirtualPathObjectFactory(VirtualPath virtualPath, HttpContext context, Boolean allowCrossApp, Boolean throwIfNotFound)
   at System.Web.Compilation.BuildManager.CreateInstanceFromVirtualPath(VirtualPath virtualPath, Type requiredBaseType, HttpContext context, Boolean allowCrossApp)
   at Telerik.Sitefinity.Web.UI.ControlUtilities.CompileControl(String virtualPath)
   at Telerik.Sitefinity.Web.UI.ControlUtilities.LoadControl(String virtualPath, Page page)
   at Telerik.Sitefinity.Web.UI.VirtualPathTemplate.InstantiateIn(Control container, PlaceHoldersCollection placeHolders)
   at Telerik.Sitefinity.Web.UI.SimpleView.CreateContainer(ITemplate template)
   at Telerik.Sitefinity.Web.UI.SimpleView.get_Container()
   at Telerik.Sitefinity.Web.UI.SimpleView.CreateChildControls()
   at System.Web.UI.Control.EnsureChildControls()
   at System.Web.UI.Control.PreRenderRecursiveInternal()
   at System.Web.UI.Control.PreRenderRecursiveInternal()
   at System.Web.UI.Control.PreRenderRecursiveInternal()
   at System.Web.UI.Control.PreRenderRecursiveInternal()
   at System.Web.UI.Control.PreRenderRecursiveInternal()
   at System.Web.UI.Control.PreRenderRecursiveInternal()
   at System.Web.UI.Control.PreRenderRecursiveInternal()
   at System.Web.UI.Page.ProcessRequestMain(Boolean includeStagesBeforeAsyncPoint, Boolean includeStagesAfterAsyncPoint)
   at System.Web.UI.Page.ProcessRequest(Boolean includeStagesBeforeAsyncPoint, Boolean includeStagesAfterAsyncPoint)
   at System.Web.UI.Page.ProcessRequest()
   at System.Web.UI.Page.ProcessRequest(HttpContext context)
   at ASP.sfpageservice_45d368fb_a8a8_4cb0_8929_9f5d2f788882_120t8d6701230_default_aspx.ProcessRequest(HttpContext context) in c:\Windows\Microsoft.NET\Framework64\v4.0.30319\Temporary ASP.NET Files\root\4e8361a9\d9057781\App_Web_45d368fb-a8a8-4cb0-8929-9f5d2f788882_120t8d6701230_default.aspx.d63928b6.xuf1ckmk.0.cs:line 0
   at System.Web.HttpApplication.CallHandlerExecutionStep.System.Web.HttpApplication.IExecutionStep.Execute()
   at System.Web.HttpApplication.ExecuteStep(IExecutionStep step, Boolean& completedSynchronously)

Additional Info:

TimeStamp : 18/11/2015 2:36:19 AM
FullName : Telerik.Sitefinity.Utilities, Version=7.0.5114.0, Culture=neutral, PublicKeyToken=b28c218413bdf563
AppDomainName : /LM/W3SVC/20/ROOT-1-130922877442563104
WindowsIdentity : IIS APPPOOL\AITSL-Source

The resolution was uninstalling Microsoft updates until the problem disappeared. The issue would appear associated with Security Update for Microsoft Windows KB3098779
Remove this and the site reverts back to normal functionality. The explanation of the update from Microsoft is: