Hi Jimmy Bucklen,
Good day. I'm Jhun an independent advisor. In regards with automatic updates, the AutoUpdate background agent requires to run in order to function at all, including manual updates. If the agent is blocked, Office treats updates as unavailable and shows the warning every time.
If the background agent is disabled, the Microsoft Auto Update (MAU) is considered non-functional. Allowing "manual updates" without the agent would create, partial installs, permission failures, corrupted Office bundles and etc. Instead of risking all of those, Microsoft would rather enforces an all-or nothing policy. This is why it feels like a punishment, but on a good side it serves as a guardrail.
I hope this explains well
Regards,
Jhun