Hi, @Chong
Thank you for posting in Microsoft Q&A forum.
Yes, the Automatic Deployment Rules (ADRs) in SCCM can replace the auto update feature in WSUS. ADRs can be used to automatically deploy software updates on a schedule, and you can configure both evaluation and deployment schedules. The evaluation schedule determines how often the ADR evaluates software updates to determine which ones to deploy, and the deployment schedule determines when the software updates are actually deployed to client computers.
The schedule settings in Administration > Client Setting > Software update are for configuring how often client computers check for software updates and how often the software updates client agent reevaluates software updates for installation status on Configuration Manager client computers. This is separate from ADRs and is used to configure the behavior of client computers when they receive software updates.
If the answer is the right solution, please click "Accept Answer" and kindly upvote it. If you have extra questions about this answer, please click "Add comment".