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Avast, please separate the update selections between program update and VPS update.
I opted to be notified when there is a PROGRAM UPDATE available.
Apparently my decision applies to ALL UPDATES.
Update options (settings) are there for both VPS and Program on my XP system.
My VPS updates remained on Auto and the Program update was changed to 'Ask when update is downloaded.' Previously I had it set to 'Ask when an update is downloaded, I soon set it back. This change happened after a custom install of 11.2.2260 over 11.1.2253.
I did a manual update from the UI on my win7 system and the settings remained as they were pre-update.