AWUS and DS should work just fine together. What seems to be happening is an inability to connect to your installation server.
In the #2 log (actually created first), the update process is running under your administrator account, so the DS doesn't really come into play here. However, almost immediately the process exits with the error message (translated from Slovenian, thank you Google Translate!) "Service processcould not connectto theservicecontroller." This may well be related to the error your #1 log gets.
In #1, the update process runs as SYSTEM. It's also an older patch level of sapsetup, but that is probably what you're trying to test the update of, right? This time you are getting the classic error "\\<server>\<share>\setup is not a valid sapsetup folder." This usually means that the share permissions on the server folder are incorrectly set. Since this process is running as SYSTEM, it has local administrator privileges to the workstation, but it doesn't necessarily have any domain level access permissions. So, it's possible the permissions on the server share are preventing the update service from finding the \setup folder.
Try giving the Everyone AD group Read-Only access to the share (and Administrators should have Read-Write), and then restart the update service (or reboot the workstation) and see what happens.
--Matt