We’ve updated official guidance and published it as an article on docs.microsoft.com: Change the Microsoft 365 Apps update channel for devices in your organization. We recommend that you follow the s...
First let me talk about the Office365 updates through the CDN...
The issue I encountered recently was exactly what you have described, however working with Microsoft and identifying the updatetargetversion setting apparently means that the custom schedules will apply as expected. Right now this is unconfirmed as I am waiting on for next week patch release to confirm.
The design I have implemented is kind of a "halfway house" on the journey to modern management. We are getting the updates from the CDN but using GPO/Policy Preference and AD Groups to deploy the config to the the endpoints, and SCCM and Power-BI dynamic reporting. Ultimately I want to use Azure AD Groups and Custom log analytics to provide the reporting, but I will tackle that at later date.
The following shows the current design:
1) System is added to Office365UpdatePilotRing Active Directory Group
2/3) Office365Updates-Global Group Policy is applied and the Pilot ring configuration is set through policy preferences and item level targeting filtered by the Office365UpdatePilotRing AD group
4) Office Automatic Updates 2.0 runs and the system checks for and installs the update according the scheduling configured through the policy preferences
5) System runs a custom script to determine if office updates have been installed within the previous 24 hours, if yes then an SCCM hardware inventory scan is triggered to update V_GS_InstalledSoftware within the SCCM DB
6) Power-BI dashboard synchronizes through the on-premise gateway and reporting is updated dynamically
Configuration being applied through the policy preferences (there are a two custom keys being written for reporting purposes) :
Including the updatetargetversion will enable the different scheduling you can see in the above image.
I'm still testing Windows Update For Business but I hope we don't have the same scheduling issue.