1) Install KB3033929 from https://www.microsoft.com/en-us/download/details.aspx?id=46148 (or) update Windows from Control Panel.
2) You can verify whether the KB3033929 is installed successfully by running the following command from command prompt.
wmic qfe | find "KB3033929"
If the above command returns the details of the KB like the URL, machine name, KB ID, user name etc. then KB3033929 is installed successfully.
Run Atmel Studio installer Windows KB3033929 validation will be successful now.
3) If KB3033929 failed to install with error saying it is already installed then run the following command to check whether cummulative KB3172605 is present
wmic qfe | find "KB3172605"
If the above command returns the details of the KB like the URL, machine name, KB ID, user name etc. then the KB3172605 is installed successfully.
In this case run Atmel Studio installer from the command prompt with the switch
as-installer-7.0.1188-web.exe /SystemValidationErrorAsWarning