No, I just tried it. Update,
I actually had to wipe my phone and do a fresh restore from scratch. Before that I actually tried to return this phone back to att but I'm three days past the window to do so. I really cannot stand the OS right now. Crashes, locks, tiles moving by themselves, battery heat and drain as well as this storage bug and update issue. I know all OS launches have at least some issues but seriously. This was irritating.
So, I'm forced to stick with it, so I've been able to update it and so far so good. I'm still with Windows, but 8.1 would be a better choice for this phone. 10 is still 6 months or a year early.