ZMM Update Manager fails with "Failed to connect to licensing server"

"Failed to connect to licensing server" when running the ZMM Update Manager or when creating the first organization using the dashboard

Added Proxy configuration settings for ZMM to use.
Commands:
netsh winhttp show proxy
Shows the current proxy settings.

netsh winhttp reset proxy
Sets the proxy settings back to pass-through/Direct

netsh winhttp import proxy source=ie
Transfers Proxy settings from IE for configuration

netsh winhttp set proxy proxy-server="proxy.example.com:8080" bypass-list="<local>;10.0.0.0/8;172.16.0.0/12;192.168.0.0/16;example.com"
Manually configuring the proxy

ZMM Update Manager could not get to https://zmmupdate.novell.com to get updates because a proxy server was being used in the environment.

The issue can also be caused due to firewall configured in the network which restricts the connection. LAN trace shows that connection to zmmupdate server is reset by the firewall.

Proxy settings for a 64 Bit OS. One applies to the 64 bit environment and one for the 32 bit environment. To set the x64 WinHttp settings using netsh.exe, simply open a command prompt and type ‘netsh winhttp import proxy source=ie’. This will run the 64 bit version of netsh.exe from the System32 directory. To set the 32 bit (x86) WinHttp settings, open a command prompt and navigate to the Windows\SysWOW64 directory and run netsh.exe from there.

Tracing can also be turned on for troubleshooting purposes
set tracing [output=] file | debugger | both [trace-file-prefix=] FilePrefix [level=] default | verbose [format=] ansi | hex [max-trace-file-size=] FileSize [state=] enabled |disabled

Example:

set tracing trace-file-prefix="C:\Temp\Test3" level=verbose format=hex 

In case of firewall causing the issue, setting a rule in the firewall to allow access to setting a rule allow https://zmmupdate.novell.com resolves the issue.