@Joshua_C4T
*** UPDATE ***
It appears that if I DO NOT disable the WinHTTP Web Proxy Auto-Discovery Service but instead put the value to "3" (Manual) and add the 4 registry key listed below, I have now literally no more WPAD DNS request at all !!!! I have Wireshark my connection for 2 hours straight and no more request at all ...
Please take note that I have applied all these modifications through a GPO.
Disable the WinHTTP Web Proxy Auto-Discovery Service
HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Services\WinHttpAutoProxySvc
Value Name: Start
Value Type: REG_DWORD
Value Data: 3 (Manual)
Disable WPAD (Web Proxy Auto-Discovery) (Key #1)
HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows\CurrentVersion\Internet Settings\WinHttp
Value Name: DisableWpad
Value Type: REG_DWORD
Value Data: 1
Disable WPAD (Web Proxy Auto-Discovery) (Key #2)
HKEY_CURRENT_USER\SOFTWARE\Microsoft\Windows\CurrentVersion\Internet Settings
Value Name: AutoDetect
Value Type: REG_DWORD
Value Data: 0
Disable WPAD Auto-Discovery
Path:
HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Internet Settings\Wpad
Value Name: WpadOverride
Value Type: REG_DWORD
Value Data: 1
Disable WPAD DNS Fallback Mechanism
Path:
HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Services\DNSCache\Parameters
Value Name: DisableAutoProxy
Value Type: REG_DWORD
Value Data: 1
This will stop the system from performing WPAD lookups using DNS.