AUTOMATIC is suppose to just update automatically and just let me know reboot is required if there is such requirement. If not, then that's that. I too don't understand the point of notifying me and showing things. Just bloody update it quietly, it's why it's set to AUTOMATIC in the first place.
Basically, current "Automatic" is behaving like the 3rd option called "Notify me when update is available". Makes no sense at all.