Restored back to 12/31 image on backup machine and can shut down again normally. Could have kept using ctrl+Alt+Del and click red icon to shut down but why bother right now. Spoke to soon, the same error occurs even after restoring 12/31 image. Might as well update again with January updates and deal with it on my backup laptop until I decide when I will migrate to Windows 10. I updated the final Windows 7 updates and now I can shutdown fine at least for now. Hopefully final edit of this post. Shutdown bug came back even after updating all. For now, get used to Ctrl+Alt+Del. Have upgraded my main laptop to Windows 10 and after some work all running well for now.