So there was some access issue with the share. I created a new share for software deployment via group policy and gave Domain Computers access and now it's working fine.
I think there was some legacy permissions issue on the previous share location I was trying to use. I had set up a security group to test software deployment with and added the computers I was testing, I then gave permission to the deployment security group but for some reason it didn't work.
Working great now. New share only to be used for Group Policy Deployment and read access granted to Domain Computers. I think it was the sharing permissions as opposed to security permissions.
Allow automatic updates immediate installation > enabled will bypass Allow non-administrators to receive update notifications > disabled if the system is newer then 2008 from what I have read
If you want Automatic updates enabled then you should put Allow non-administrators to receive update notifications > enabled or not configured
Test this on one of the workstations and see if that helps
The second option is this
User Configuration > Policies > Administrative Templates > Windows Components > Windows Update
Remove access to use all Windows Update features > Enabled: 0 - Do not show any notifications
Best Answer
Configure policy Configure Automatic Updates (either local or domain policy) and check the box for "Install updates for other Microsoft products"