Krypton 17 B5 – Addon updates fail / mouse hangs every 5 seconds.

Recently completely uninstalled Kodi Krypton 17 B3 (shield and manual dir/reg review) and did a fresh install of B5. Immediately after installing, before ANY customization, I noticed 2 problems. Interestingly trying to uninstall and install Krypton B3 I now see the same issues. Installing a clean install of Jarvis appears to work fine.

1) Default packaged addons are failing to update. In the logs I see “ERROR: XFILE::CDirectory::GetDirectory – Error getting” and “ERROR: XFILE::CDirectory::Create – Error creating D:\Users\mediauser\AppData\Roaming\Kodi\temp\” errors.
* Tried installing an additional addon but it failed with the same error.

2) Mouse hang – While Kodi is running every 5 seconds the mouse will hang/freeze/pause for ~.5 seconds. Measured with a stop watch and the timing is a consistent 5 second interval. Looking at logs I’m not seeing anything nor do I see anything in the Windows event logs. USB power management (power off) is disabled on all USB hubs.

Debug log: http://pastebin.com/GXvtWZSq

This system is a little long in the tooth but runs well.
* Windows 10 Pro (v1607)
* I7-2700K CPU
* 16GB Ram
* AMD Radeon HD 5770 Graphics
* C: – OS SSD Drive
* D: – Primary App/Data drive (User dirs and app dirs here – Kodi installed here)
* MS Comfort Optical Mouse 3000

Any assistance would be appreciated.