If you are new to clustering, like me, then the hundreds of checks the Microsoft wizards handle for you are invaluable tools to ensuring a functional cluster configuration. There are, however, some alerts that seem to indicate something is required when it is not. This is one of those alerts in Cluster Aware Updating (CAU) . You may also see:
The Microsoft WindowsUpdatePlugin plug-in reported a failure while attempting to install updates on node “XXXXX”. Additional information reported by the plug-in: (Cluster Update Exception) There was a failure in a Common Information Module (CIM) operation, that is, an operation performed by software that Cluster-Aware Updating depends on. The computer was “XXXXX” and the operation was “InstallUpdates[CAUNode, WCD[XXXXX]]. The failure was WU_E_DS_NODATA ==> (CIMException) FAILED HRESULT 0x80248007”
This setting is not mandatory; you don’t need to configure it if you don’t have proxy server in your network.
When you download Microsoft updates from Microsoft Update or Windows Update to cluster nodes in certain branch office scenarios, you may need to configure proxy settings for the Local System account on each node. For example, you might need to do this if your branch office clusters access Microsoft Update or Windows Update to download updates by using a local proxy server.