I testet this option for 2 weeks and Kasperky doesn’t update when this option is set.
The internet connection works and when I press the update button manually, the update starts.
The Kaspersky support told me to change my proxy settings but the problem consists. As you can see in the screenshot, the PC is online for 56min, but Kaspersky won’t update. In the last test I made, the update doesn’t ran the update after 5 (!) days.
Windows 10 Professional
Kaspersky Total Security v18.104.22.1685 (j)