I made the change and restarted the WSUS/IIS server and tried to add the SUP on the ECM and got the same error message.
My setup is:
Server 2022 running WSUS/IIS on the network in a HyperV VM
Server 2022 running SQL Server & MECM on a HyperV VM same host as the WSUS server
Seems like the servers don't see each other.
Both are fully patched, SQL is updated. Not sure why it keeps saying the wrong version of WSUS installed, it is the most current version from the server unless it is looking for it on the ECM server which it shouldn't be I would think. I have the machines detected on the ECM but the client won't install. Needless to say, there are a few errors that are probably simple and holding everything back.
The same error message seems to repeat every hour or so
<Thu Oct 21 09:09:17 2021> SMSWSUS Setup Started....
<Thu Oct 21 09:09:17 2021> Parameters: E:\Program Files\Microsoft Configuration Manager\bin\x64\rolesetup.exe /install /siteserver:APP-MEPM-DAL SMSWSUS 0
<Thu Oct 21 09:09:17 2021> Installing Pre Reqs for SMSWSUS
<Thu Oct 21 09:09:17 2021> ======== Installing Pre Reqs for Role SMSWSUS ========
<Thu Oct 21 09:09:17 2021> Found 1 Pre Reqs for Role SMSWSUS
<Thu Oct 21 09:09:17 2021> Pre Req SqlNativeClient found.
<Thu Oct 21 09:09:17 2021> SqlNativeClient is already installed (Product Code: {9D93D367-A2CC-4378-BD63-79EF3FE76C78}). But to support TLS1.2, a new version with Product Code: {B9274744-8BAE-4874-8E59-2610919CD419} needs to be manually installed
<Thu Oct 21 09:09:17 2021> Pre Req SqlNativeClient is already installed. Skipping it.
<Thu Oct 21 09:09:17 2021> ======== Completed Installation of Pre Reqs for Role SMSWSUS ========
<Thu Oct 21 09:09:17 2021> Installing the SMSWSUS
<Thu Oct 21 09:09:17 2021> Checking for supported version of WSUS (min WSUS 4.0)
<Thu Oct 21 09:09:17 2021> Checking runtime v4.0.30319...
<Thu Oct 21 09:09:17 2021> Did not find supported version of assembly Microsoft.UpdateServices.Administration.
<Thu Oct 21 09:09:17 2021> Checking runtime v2.0.50727...
<Thu Oct 21 09:09:17 2021> Did not find supported version of assembly Microsoft.UpdateServices.Administration.
<Thu Oct 21 09:09:17 2021> Supported WSUS version not found
<Thu Oct 21 09:09:17 2021> Supported WSUS Server version is not installed. Please install WSUS 3.0 SP2 or above.
<Thu Oct 21 09:09:17 2021> Installation Failed. Error Code: 136
<Thu Oct 21 09:09:17 2021> ~RoleSetup().