I had the same problem. Perhaps the webdriver update that you run installs Selenium files in a different folder that are not inside your project folder. At least that was my business.
I used the grunt task to run Protractor tests. If you use the same plugin, check this folder:
C:\{yourprojectfolder}\node_modules\grunt-protractor-runner\node_modules\protractor\selenium
If you do not find this folder, you get the same problem as me. Try with another bash. You are using cmd, try with Git bash. Find yourself in the following directory:
C:\{yourprojectfolder}\node_modules\grunt-protractor-runner\node_modules\protractor\bin
Then run:
webdriver-manager update
Finally, check the selenium folder inside the Protractor plugin. It must be created now.
I did not have time to find why cmd behaves different from Git Bash when executing the same command inside the same folder. Each installs Selenium files in different places.
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