Thanks Kay_Toma,
The VMs I have used for testing have been deployed via MDT using a custom gold image but I have the update steps in the Task Sequence disabled for these deployments. I also don't domain join them during OSD so I can take a checkpoint of the fresh deployment and then join the domain into my test OU. So these machines should not have any previous policy remnants getting in the way.
I changed the settings you suggested yesterday in the test policy and then deployed a new VM to test the policy. Updates were installed yesterday and now I am just watching to see if I get any notifications before restarting. The Start Menu Power indicates updates need a restart as does the Taskbar icon. I haven't seen a toast notification yet though.
I have seen references to the registry key "restartnotificationsallowed2" in HKLM\Microsoft\WindowsUpdate\UX\Settings and setting the value to 1. I have tried that and yet the option in Settings>Update & Security > Windows Update > Advanced options for "Show a notification when your PC requires a restart to finish updating" remains Off and is unchangeable as it says it is managed by my organization. Should that registry key be set?
- John