done that several times, next time you go to Windows Update it downloads the darned KB3035533 again
What you need to do is do the update scan and then, when it shows it as available, you deselect it and then right click to hide the update.
BUT....
If you had earlier selected the 'I want a free upgrade' option then you probably want to right click on the systray icon, check status and then cancel the request first.
When you have done all that you might want to do a 'disk cleanup' on the C drive as you'll probably find the 3 Gig hidden download folder there.
There are also a couple of other updates you want to uninstall too as they were added by Microsoft to allow 'telemetry tracking' on Windows 7 - i.e. one of the privacy issues people are annoyed about on Windows X.
KB2952664 Compatibility update for upgrading Windows 7
KB2990214 Update that enables you to upgrade from Windows 7 to a later version of Windows
KB3021917 Update to Windows 7 SP1 for performance improvements
KB3022345 Update for customer experience and diagnostic telemetry
KB3035583 Update installs get windows 10 app in Windows 8.1 and Windows 7 SP1
KB3068708 (replaces KB3022345) Update for customer experience and diagnostic telemetry
KB3075249 Update that adds telemetry points to consent.exe in Windows 8.1 and Windows 7
KB3080149 Update for customer experience and diagnostic telemetry
Worse thing I found about 10 was that it does the driver/updates etc and you can't stop 10 from doing it. There is a problem with one of the Nvidia drivers on a dual graphic card laptop - where it black screens the laptop display - so if you install the fixed driver from Nvidia site, Windows will then update it to the faulty one for the next reboot.
As Microsoft are now not telling you what each update fixes either, this is particularly annoying for support as the 'what did you last update to stop the software working' question now has no meaning.