Hi,
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- Yes. The information is taken from the local Windows Update Service. If Windows Update service is configured with WSUS available updates will be reported from WSUS to Windows Update service and from there to Update management.
- Once VM is onboarded to Update Management a system hybrid worker is automatically registered with each VM onboarded. Every system hybrid worker is in its own Hybrid worker group. Once you schedule update the hybrid worker will pick the job and execute it. Updates are installed again trough Windows Update service. If you are not excluding or including specific updates everything that the Windows Update service reports as available for install and recommended will be installed. I believe optional updates are not installed.
In short the service interacts with the Windows Update service rather having its own mechanism for detecting and installing updates.
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