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Without Microsoft Update enabled, you will need to use another update solution like WSUS or SCCM in order to receive automatic updates.
While the two options on the dialog on independent, in most cases, it doesn't make sense to uncheck the opt-in to Microsoft Update and still check that you want powerShell updates. The only special case for this is if updates are being delivered to windows update through a WSUS server. SCCM is usually this same special case.
GP on "Manage when quality updates are received" in Manage updates offered by from Windows Update (See Image 1).
This policy will defer updates for a period of time defined by the policy.
Our updates will almost always be initially released as a quality update even if there is a security issue addressed. Only after there has been some time and the issue has to determined to be serious, would we change an update to be a security update.
GP on WSUS
Use GP to make sure user get Updates
When deploying updates from WSUS, also deploy a registry value. This will opt the computers into to receiving PowerShell 7 updates.
HKLM:\SOFTWARE\Microsoft\PowerShellCore\UseMU as a DWord with the value 1
Not able to use MU
Another issue when you have GP enabling WSUS, is there is a possibility that the domain admin may or may not let you use WU or MU.
This policy is under Manage updates offered from Windows Server Update Service (see image 3).
The policy is called Do not connect to any Windows Update internet locations
GP on MU/WU.
Group policy can be configured in a way to force you into Microsoft Update or not let you use it.
The policy is under Manage End User Experience (see image 2) and the policy is Configure Automatic Updates
Activity
TravisEz13 commentedon Jul 27, 2021
FAQs:
Our updates will almost always be initially released as a quality update even if there is a security issue addressed. Only after there has been some time and the issue has to determined to be serious, would we change an update to be a security update.
HKLM:\SOFTWARE\Microsoft\PowerShellCore\UseMUas aDWordwith the value1Manage updates offered from Windows Server Update Service(see image 3).Do not connect to any Windows Update internet locationsManage End User Experience(see image 2) and the policy isConfigure Automatic UpdatesImage 1:

Image 2:

Image 3:

Fixes #7787 - Add MU FAQ and update links (#8163)