Windows updates are being controlled by you system admin.

I have seen this being resolved by logging in as the local administrator instead of the domain administrator.

is it a physical server or VM? what’s the username logged in for Windows Update?

Physical server

okay. tried local admin as mentioned above?

Please try this

Open an elevated Command Prompt
Run wuauclt.exe /ShowWindowsUpdate
From there run the scan.

Any third party software installed on the server? I once struck this issue while working on a copy of Server 2008 and it turned out to be another software package that was taking control of update checking. Disabling it fixed the problem for me at the time. May not be your scenario, but just thought I'd throw it out there as something to consider.

Regards, Andrew

echo Andrew.
A setting is being pushed down restricting windows update either GPO in AD environment. or ...

Loging in as admin would only work if the Setting being pushed/set on windows updates provides the option. One could prevent event admins from being able to query MS update services.

We get what the issue is but not the environment in which the system is setup.

Export this key from the registry and post it here as text. WSUS setting are done at the computer level, not user.

HKEY_LOCAL_MACHINE\Software\Policies\Microsoft\Windows\WindowsUpdate

Select allOpen in new window

What Anti-virus are you using? Some like Vipre, you can set the policy to use their patch management and not Windows.