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My Wii U system update failed at the 75% mark so I decided to look around the system and play Nintendoland ...

The OS was installed but most of the functionality was locked out until you installed your system update. Nintendoland worked well and when I was done the system update had completed downloading in the background and began installing.

I could be wrong but I suspect that the online services were not done when Nintendo began manufacturing the system so they locked down everything that used it.