Hid update, but yellow shield still says updates are ready

I have hidden update KB905474 in Windows Updates (because it won't install,
and also because of all the problems I've read about even after it installs),
but the yellow shield for Automatic Updates still shows up and says there are
updates ready to be downloaded. When I click on it the window is empty.

The yellow shield should not appear when the update is hidden. How do I make
it realize there are no updates to be downloaded and installed?

Could the yellow shield be coming up because the update was downloaded but
not installed? It downloaded without my consent--my settings are to notify me
but not download, but it downloaded anyway.

Is there some way to delete the downloaded file? Maybe that would fix the
problem.