Define during which interval the clients will be upgraded.7 days is the default, which is usually fine, but change it according to your requirements.Once you have configured the Automatic Client Upgrade, simply run through the CU1 installation wizard, and you will see the step where you can select Automatically Apply as I previously mentioned.One confusion you might run in to is when you go back and check the Latest version property in the Automatic Client Upgrade tab again after the CU1 upgrade.If you don’t, you will not see this step in the wizard: When selecting Automatically apply this happens: This is how you enable Automatic Client Upgrade: 1. Check Upgrade client automatically when new client updates are available and press OK in the window that pop ups When enabling the Automatic Client Upgrade, Configuration Manager will create a Scheduled Task for each client machine that have a version number lower that the Latest Version property.Select your Site and select Hierarchy Settings in the top ribbon. The Schedule Task will be created with a random run interval, which means that all of the clients will not be updated at the same time, which could cause performance issues.When you enable Endpoint Protection, a default antimalware policy is applied to client computers and you can use additional policy templates that are supplied or create your own custom antimalware policies to customize the settings for your environment.You can configure Configuration Manager software updates to deliver definition updates to client computers by configuring automatic deployment rules.
So finally I realized it is due to IIS permission issue. Checked on the client machine, HW inventory report was send successfully.
You must allow a minimum of 1 hour to ensure that content for the deployment has time to reach distribution points in your hierarchy.
Some definition updates might also include antimalware engine updates, which might take longer to reach distribution points.
Before you start, ensure that you have configured Configuration Manager software updates.
For more information, see Specify the time for the automatic deployment rule to run.