We use SCCM for deploying our Updates. We have Driver Updates working with the following Configuration (Hopefully it will help).
Initially it seemed like a week with testing different Configurations before I actually seen something. (Combination of the incorrect settings, and MS had issues).
Intune Config
Tennant Administration -> Connectors and Tokens -> Windows Data
Enable features that require Windows diagnostic data in processor configuration = ON
Configuration Profile (Settings Catalog)
System -> Allow Telemetry = Basic
Driver Policy Manual (Until we work out how this all works in our environment)
Client GPO:
Administrative Templates\
Windows Components/Windows Update/Legacy Policies
Do not allow update deferral policies to cause scans against Windows Update = Disabled
Windows Components/Windows Update/Manage updates offered from Windows Server Update Service
Allow signed updates from an intranet Microsoft update service location = Enabled
Leave it for a few days for the clients to pick up the configuration, you should start seeing Driver Updates. Once you do I then set the following configuration so the clients can get the updates. The reason for this is if you do all the configaration at the same time the client may just get the update from MS bypassing the Intune Config, You can read up about it here: https://learn.microsoft.com/en-us/mem/intune/protect/windows-driver-updates-overview
How do I use driver management if I’m currently using Configuration Manager for updates?
You can continue to use Configuration Manager for updates other than Drivers, or to start to move other update types to cloud management in Intune one at a time. First, ensure you're using cloud attach or co-management, so that your devices are enrolled in Intune. Then, configure your driver policies in Intune to enroll devices and get them ready for management. After approximately one day, set the policy SetPolicyDrivenUpdateSourceForDriverUpdates to a value of 0, to scan for driver updates from Windows Update.
Administrative Templates\
Windows Components/Windows Update/Manage updates offered from Windows Server Update Service
Specify source service for specific classes of Windows Updates
Driver Updates = Windows Update