How to Block "Update Mac Automatically" Prompt During Setup Assistant?

@user-MSmmWbbdFI That can be disabled by selecting the Software Update item under the Setup Assistant Options section of your PreStage Enrollment configuration. Items that are selected in that section will be skipped during Setup Assistant.

Here's how it looks for me.  Computers > PreStage Enrollments > [Name of Prestage Enrollment] > General.

It will be the last item.

I'm glad you mentioned this as I had forgot to update mine since Apple Intelligence came out.

Any on the fly control for macs that won't be pre-staged quite yet?  I haven't found that the recommended restrictions payload in a profile is successfully removing them (whether AI and Software Update are allowed or restricted) for a new or existing login.

One thing to remember, you probably don't want users setting up stale OS's. I recommend the disabling checkbox to remove user choice for software updates frequency, but maybe check your setting for Minimum required OS Version to make sure they get enrolled as patched workstations.

Well from what I've seen, the issue pictured above in the OP doesn't occur on stale OS's. Its only happening on Sequoia macOS 15 in-place upgrades, unless the computer is provisioned through the new Sequoia pre-stage options of "skip Intelligence" and "skip Software Update".