Hi Bala_Delli thanks for your reply!
I've been doing more investigation on the devices that i can see the deltadownload.log and I can see that clients affected by the issue do not have "UpdateServiceUrlAlternate" set in registry in "HKEY_LOCAL_MACHINE\SOFTWARE\Policies\Microsoft\Windows\WindowsUpdate", the not affected devices have this registry created and set to "http://localhost:8005".
Can you tell me how exactly this registry item is being created? Is it based on some particular MECM client setting? Or should it just be created out of the box if the client version is at least on the 2303 level?
P.S.
After reviewing several client logs, I could see that this error "Unable to read existing WUA Group Policy object. Error = 0x80070002." just comes and goes, the earliest entries I could find were from February 2023 ..., so it's not a GPO conflict and I'm wondering what else could affect it.