Same problem here. There must be a URL in the latest MVPS file that Kaspersky detects as a malware target/source, so it responds by blocking the connection on update. If you actually already have the updates in your HOSTS file, Kaspersky blocks access to the file until you add it as an exclusion or allow a complete overwrite of your HOSTS file.
This same thing happened a couple of years back. How it was resolved, I don't know, but the problem "went away" after a while.
Adding an exclusion for HOSTS isn't the greatest idea in the world... It's definitely a file that malware will tamper with.
Blowing the file away completely instead of surgically removing the offending line is also not a good approach.
... and the lack of detail about which line of a text file is causing the alert is annoying to say the least.
For now, you can "work around" the issue by pausing Kaspersky, adding an exclusion for your HOSTS file, downloading the MVPS update, and resuming Kaspersky.
But yeah.. Kaspersky, please fix ASAP.