WSUS BITS throttling Windows 10 does not work

The problem I am having is that I have configured WSUS to use BranchCache using  BITS.
The Windows 10 clients are not members of domain thus we use local policy and they talk to the WSUS box fine and the approved updates are coming down without a problem, even branchcache works fine, except updates are coming down from WSUS server and always at full speed, no BITS throttling at all.

I see downloads are via BITS in PerfMon - BITS:Bytes from server
and also via PS C:\Windows\system32> Get-BitsTransfer -AllUsers

In first step I enabled

Network/Background Intelligent Transfer Service (BITS)                        
      Allow BITS Peercaching      Enabled            
      Limit the maximum network bandwidth for BITS background transfers      Enabled            
                  Limit background transfer rate (Kbps) to:      0
                  From      6:00 AM
                  To      12:00 AM
                  At all other times      
                  Use all available unused bandwidth      Enabled
                  OR      
                  Limit background transfer rate (Kbps) to:      20
I expected no transfer but there was no limit - update was downloaded from WSUS server as before during working hours.

In second step I also enabled
      Set up a work schedule to limit the maximum network bandwidth used for       Enabled            
      Ignore bandwidth limits if the source and the destination are on the same subnet.      Disabled            
                  Work Days      
                  From      Monday
                  To      Saturday
                        
                  Daily Work Hours      
                  From      6:00 AM
                  To      12:00 AM
                        
                  Bandwidth Limits During Work Hours      
                  High Priority Limit:      0
                  High Priority Unit:      Kbps
                  Normal Priority Limit:      0
                  Normal Priority Unit:      Kbps
                  Low Priority Limit:      0
                  Low Priority Unit:      Kbps
                        
                  Bandwidth Limits During Non-Work Hours      
                  High Priority Limit:      0
                  High Priority Unit:      Unlimited
                  Normal Priority Limit:      0
                  Normal Priority Unit:      Unlimited
                  Low Priority Limit:      0
                  Low Priority Unit:      Unlimited

But non of these policies force client to stop downloading update from WSUS during working hours.

What do I do wrong here?