Here's what worked for me on a Win7 and Win8 laptop:
Boot into Safe Mode (not Safe Mode with Networking).
Find the Malwarebytes service in the list, right-click, and select "Properties".
Change the startup type to "Manual".
Close services.msc and reboot.
When Windows comes back up, run services.msc again.
Right click on he Malwarebytes service and select "Start".
Immediately start up the Malwarebytes application, go to the dashboard tab, and click on "Updates: Current" link.
As soon as it finishes, in services.msc, right click on the Malwarebytes service and select "Stop". The Malwarebytes application will close when the service stops. Dismiss the error box that appears.
Right click on the Malwarebytes service again, select "Properties", and set the startup type back to "Automatic".
Right click on the Malwarebytes service again, and select "Start".
It should work now. You can use Task Manager to check and make sure the service's memory isn't growing. If you open the Malwarebytes application, go to "Settings", and select the "About" tab, it should now say the update package version is 1.0.3803.