Virtual machines built in azure will be defaulted to having updates automatically downloaded and installed when they are released on patch Tuesday.

When you look at windows update you will see it says Some settings are managed by your organization which inplies that there is a group policy object being applied to the computer. This is not the case and you can fix this by simply:
- Launch RegEdit.exe
- Expand
HKLM > Software > Policies > Microsoft > Windows > WindowsUpdate
- Right click on the
AU
key and select DELETE - Reboot
- Have a nice day
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