Hi Justin,
As Wsus has been deprecated, https://techcommunity.microsoft.com/blog/windows-itpro-blog/windows-server-update-services-wsus-deprecation/4250436
This policy has been adjusted to by default download components directly from Windows Update and have the opportunity to get the components from a network location (and fall back to Windows Update if that fails)
'If you disable or do not configure this policy setting, or if the required files cannot be found at the locations specified in this policy setting, the files will be downloaded from Windows Update, if that is allowed by the policy settings for the computer.'
Before the change in 24H2 the option to receive them from WSUS made the policy more complex as follow WSUS settings was the default and direct Windows Update or local share were the other options.
To enable the settings you describe above you would no longer need to set the GPO or set it to disabled to force the setting
If you want to doublecheck the impact oof the GPO through registry, it is set here: HKLM\Software\Microsoft\Windows\CurrentVersion\Policies\Servicing
Hope this helps,