There is physically nothing to update if you already have the latest version which you have. Regardless of if you are up to date, the manual check will download two files, servers.def.vpx to update the servers.def file if required and prod-ais.vpx.
These two will always start the update process and only if you don't have the latest version and you are reporting that you have 100616-1 (which is the latest).
So your problem isn't that of your title "Latest virus definitions fails to install" as it is working as it should, your problem is that it isn't reported correctly by the avastUI Summary.
Have you tried rebooting, that usually resolves this out of sync virus definitions version ?
Or try a repair of avast. Add Remove programs, select 'avast! Anti-Virus,' click the Change/Remove button and scroll down to Repair, click next and follow. This has in the past resolved this out of sync issue between reported and actual virus definitions version (in avast 4.8 not so much in 5.0).