@Bojan Zivkovic Intune‘s Windows Update policies only define an update strategy and they don't provide the update infrastructure itself.
So the co-managed devices which Windows Update policy has been moved to intune still need to update with WSUS. The following article will help us understand Windows Update policy:
https://techcommunity.microsoft.com/t5/intune-customer-success/support-tip-troubleshooting-windows-10-update-ring-policies/ba-p/714046
Hope the above information will help.