I distributed version 1.0, build 1, of my app via TestFlight, and everything worked perfectly.
Yesterday I archived and sent out build 2, and now upon tapping the update button, every user seems to be getting an error:
Unable to Download App
[App name] could not be installed at this time
I haven't heard from any users who didn't have build 1 installed already, but looking at iTunes Connect, no user has build 2 installed.
Encountered exactly the same problem today, trying to install a new testflight version downloading it through our company WiFi. We noticed that we could still download and install the app from mobile devices through LTE which lead us to the conclusion that for whatever reason testflight must have blocked our office IP (temporarily) for unknown reasons.