Hi @Praveen siva,
I read your description, and you mentioned "We've tried managing this via Group Policy". I want to know what policy have you used to test? In addition, I also would like to know how you disable Edge auto update. I suggest you can try to use "SpotlightExperiencesAndRecommendationsEnabled" and "ShowRecommendationsEnabled" policies to disable the update prompt. Please note that you should disable these two policies instead of enabling them.
Update:
You can continue to use * in the URL blocklist, but since the "Nurturing is blocked" message is caused by 'edge://', the actual logic is that * includes 'edge://', so you only need to add 'edge://*' to the URL allowlist.
In addition, I read your reply about disabling Edge automatic updates. Please note that if you use policy to roll back the Edge version or disable Edge automatic updates, the "Can't update Microsoft Edge" prompt you described at the beginning will not appear. You can refer to this link: https://learn.microsoft.com/en-us/deployedge/deploy-edge-plan-deployment#define-your-update-strategy-and-policies
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Best Regards,
Jinxin Wang