The new System Update folder exists, but no log files.
The problem is with the content not being imported correctly (the syncstate of the content object is PACKAGING), where the syncstate was AVAILABLE, but the meta data was still cached on the device and was not getting updated with the new syncstate. The syncstate tells the device which servers it can use to get the content from...if no servers have the AVAILABLE state then the content is inaccessible.
The content import process is not correctly notifying the calling process of an import failure. This is causing the system update to appear to have downloaded correctly when it hasn't.