KB3035583 – Update enables additional capabilities for Windows Update notifications in Windows 8.1 and Windows 7 SP1
If you are not interested in Windows 10 from Upgrade notification, you can remove this program from your PC.
Go to Control Panel > Windows Update > Installed update, remove KB3035583.
Wait for a minutes
If sucessfully the Restart your PC
Also, you need to hide the update again in next windows updates to prevent it from auto installing again since this is marked “important”.'