Yes, 1607 installs as an upgrade, not an update, and thus the same situation applies. The answer remains the same: the free space for the upgrade *must* be available on the eMMC.
Here are my suggestions for how to accomplish this:
Hope this helps,
N. Scott Pearson, thank you for the information provided.
I would like to know if the information provided to you was able to solve your concern?
In case if you need further assistance do not hesitate to reply back.
I am looking forward to hearing from you.
I forgot to change my iTunes media location to my external drive so when I synched my iPhone it put nearly 2GB of media files on the SSD. That prevented the update, so I removed the files (& the temp windows files) and changed the directory location and the update went smoothly! All is well, thanks!