My understanding was that by disabling 'Do not display 'Install Updates and Shut Down' option in Shut Down Windows dialog box' it would behave as the description states: If you disable or do not configure this policy setting, the 'Install Updates and Shut Down' option will be available in the Shut Down Windows dialog box if updates are available when the user selects the Shut Down option in the Start menu.
At the request of the users, i have been running with the below GP configuration so WSUS is less intrusive, and wont shut down their machines automatically etc.
If you google the issue, it appears that Windows 1607 doesn't play nice with WSUS.
It likes to get stuck downloading updates and never go anywhere.
Search for any error messages in the Microsoft Knowledge Base for more troubleshooting information. If you are using WSUS, verify that the client can connect to the WSUS server. If you are prompted to download the file, this means that the client can reach the WSUS server and it is not a connectivity issue. If you are not prompted to download the file, you might have a name resolution or connectivity issue, or WSUS is not config¬ured correctly.
By setting a schedule, you ensure critical updates and security patches, etc. With a manual scenario, if you have a user that's out for a few days, or a system that's otherwise vacant most of the time, it gets neglected when new updates are available.Also adding KB3176929 made no difference (both of these are referenced by multiple threads)Get-Windows Update Log is of no help since I guess it needs some symbols to make the data readable. I understand that it should be doing that per configuration, but something is wrong and narrowing down the issue might be a helpful next step.WSUS server has both of the Windows 10 related updates (including the one that required additional steps after installation). Windows 1511 updates no problem and you can even start the 1607 update from WSUS if I approve it for a computer. Download()#Install updates.$Installer = New-Object -Com Object Microsoft. I've heard there are settings which were in 1511 (?This 12 session Master Class will equip you with everything you need to understand, evaluate, deploy and maintain environments that utilize Microsoft Azure including hybrid scenarios. Occasionally, you might discover a client that isn’t automatically installing updates correctly.Such clients are typically identified during software update audits.