For me loading of the update XML file fails because the byteorder mark removal in the UncSource.GetUpdatesFeed() method doesn't work as expected.
I found a solution at StackOverflow that fixes the issue.
The File.ReadAllText() method should recognize the UTF coding automatically anyway (see MSDN).
I implemented the fix in my fork. I suggest cherry-picking the commit sonntam/NAppUpdate@4522d37.