There is another thread with this that starts with discussing the managed preference involved. Wanted to start a new thread with the user-facing error message as the subject. So far I have been running into this on pre-WWDC 2023 Apple Silicon MacBooks running macOS Ventura 13.4(22F66) and 13.4.1(22F82), while older releases seem to be able to leap into 22F82 and then begin enjoying the broken updates. This error is showing up now on systems attempting to install the rapid security response (c) too, so even more reason to bump the thread up. Our solution was to remove the Defer Updates from our restrictions payload entirely. The image below shows the only thing I changed to get it working. That instantly allowed people to install updates. Hope this helps and that Apple fixes it.
Also worth it to see what we had set before that is causing problems.

