Has anyone seen this before?
Typically this is required when upgrading a Windows Operating System.
Yes, we had this also. The update to 1607 is more like an upgrade and does require kaspersky to be uninstalled.
Yep the W10 Anniversary Update is a nice one, annoying but Microsoft demands this and we can probably look forward to a yearly big update with this behaviour....
This isn't typical and you should have to uninstall. We use the same AV as you. In order to install the 1607 feature update you need to have the MR3 version installed on the workstation before 1607 goes on.
What's MR3? is that a kaspersky version?
Maintenance Release 3. Here is the site that describes what is going on.
As a note the 9.3 / 9.2 versions of KAV are installing this version. It will show as 10.2.5.3201 version in the Kaspersky version.