How does Windows Update Rings work for Co-managed Devices? Do we need to disable SCCM patches completely, so that the windows update from Intune will work?

With Co-Management, you transfer several workloads from SCCM to Intune. When windows updates are transfered, Windows clients start to honor Intune configuration around Windows Updates and you need to specify Update rings in Intune. Theoretically, you don't need to change SCCM configuration for SUP, it will not effect WUA anymore.

@Priyanka Narendra Shinde, Thanks for posting in Q&A. I am glad that we find the cause. Yes, if GPO is set, then the group policy will take precedence. If you want to manage via Intune, you need to remove the related group policy and switch the Windows update workload to Intune.

https://video2.skills-academy.com/en-us/mem/configmgr/comanage/workloads#windows-update-policies

Here is a troubleshooting article for your reference.

https://techcommunity.microsoft.com/t5/intune-customer-success/support-tip-troubleshooting-windows-10-update-ring-policies/ba-p/714046#:~:text=1%20Check%20the%20policy%20deployment%20status%20in%20the,4%20Check%20the%20MDM%20diagnostics%20report%20More%20

Hope the above information can help.

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