I made the mistake of deleting 2 files from the download folder of SoftwareDistribution folder. Now I'm unable to check for Windows Update. Error code is 0x80070005. Unable to restore deleted files as it was permanently deleted (dumb mistake, I know).

Any way to rectify this?

you can try system restore to the date/time before you delete those files/folders ?

I have never enabled system restore before this so this is not an option.

I read on the net if I delete all contents in the SoftwareDistribution folder then re-start Windows Update, it might work. What do you think?

The few times windows update went bonkers on me, this would fix it.

No luck. Deleted all contents and restarted Windows Update. Still same error code.

Will this affect my virus protection updates?

Try running the built-in Windows Update Troubleshooter.

Under the Troubleshoot page, there is no recommended troubleshooters right now.

At the Windows Update page, there is no option for troubleshooting. Only "Help from the web" links.

I finally found the troubleshooter for windows update under "Additional troubleshooters". Activated it twice but problem still unresolved.

Looks like PC Reset is the only option left.

Do a clean installation instead of reset
Much better outcome. You can download the latest ISO from Microsoft so you'll get the latest version of Windows instead of having to update step by step