Solution
This issue is related to Microsoft's core driver files and leads to a mismatch of driver file versions on the print server. The net effect is Printing Preferences from the print server do not synchronize in Windows 10 version 1607 and driver settings found under Printing preferences; e.g., Print on both sides (duplex), Print in Black-And-White, Paper size etc., do not get transferred to the client from the print server.
A workaround has been provided by Microsoft. Please refer to the Microsoft KB article 3201130 for more information.