I also tried the setting Notify for download and notify for install in Windows 10 1607, and it worked as expected.When new updates are available, the user will receive a systray message.Note: You can also configure these Windows Update settings with a little Power Shell script that I wrote.If you apply any of the policies to Windows 10 1607, the Windows Updates settings don't show any information about the configuration.Within Group Policy, there are a number of options in the Computer Configuration | Policies | Administrative Templates | Windows Components | Windows Update section.Figure A shows one area of the Windows Update section.If you apply this policy to a Windows 10 1607 machine, the corresponding configuration in the local settings app won't change.However, according to my tests, restarts will then be scheduled corresponding to the Group Policy, and the Active hours configuration in the Windows 10 settings will be ignored.
In Active Directory domains, Group Policy can provide a limited way of achieving this functionality.
With the help of the networking monitoring tool, I could see that Windows downloaded a couple of megabytes from Windows Update, but then stopped.
Even after several hours, no new updates appeared in the Update History.
I didn't try the other Group Policy settings for Automatic Updates, but my guess is that they still work, even though the Update settings no longer show how admins have configured the computer.
Although it is no longer possible to configure the behavior of Automatic Updates within the Windows 10 settings of the Anniversary Update, two new links are now visible: Change active hours and Restart options.