WSUS - Win11 22H2 machines rebooting the day that updates are installed, and not allowing users to reschedule despite configured GPOs

Hey guys,

Running into a strange issue during our company-wide rollout to Windows 11. As part of the preparation process, we created some new GPOs to handle WSUS configuration for new Windows 11 machines. These new GPOs were cloned from existing GPOs that applied to Win10 machines, and which were confirmed working for many years. Now, however, we're seeing an issue where Win11 machines are indeed contacting WSUS for updates, and these updates are being installed at the configured time (5pm), but instead of allowing the user to defer these updates for up to four days before being forcefully installed via reboot, the machine is allowing the user to defer 5 minutes before the machine is forcefully rebooted to install the configured updates.

I've combed through available GPOs, but it looks like everything is set correctly to allow users to reschedule updates:

  • Configure Automatic Updates policy is configured with the following settings:
    • 4 - Auto download and schedule the install
    • Schedule install day: 0 - Every day
    • Scheduled install time: 17:00
  • Specify Engaged restart transition and notification schedule for updates policy is configured with the following settings:
    • For Quality Updates:
      • Transition (days): 2
      • Snooze (days): 1
      • Deadline (days): 4
    • For Feature Updates:
      • Transition (days): 2
      • Snooze (days): 1
      • Deadline (days): 4
  • Turn off auto-restart for updates during active hours policy is configured with the following settings:
    • Active Hours
      • Start: 8 AM
      • End: 7 PM

I've confirmed all other setting appear to be applying correctly (e.g. clients are being placed in correct target group on WSUS, update installation is actually happening at 5pm as configured, etc.), but WSUS and the end-user machine appear to be ignoring the above policies, specifically Specify Engaged restart transition and notification schedule for updates and Turn off auto-restart for updates during active hours. Furthermore, it also appears as though only some downloaded updates are installing on the day they're approved in WSUS, requiring additional installations the next day at 5pm, which is behavior we didn't see when pushing updates to Windows 10 via WSUS. I've conducted a ton of research into this issue, but really haven't found anything helpful, and it doesn't appear as though Windows 11 introduced any new policies that need to be configured to get the same functionality as Windows 10, so cloning the confirmed-working policies should have been enough. Has anyone seen this before, and if so, can you please advise on how to workaround or remedy the issue?