I still have a query though. You said:
Nope. The client status is accurate as reported. If there are updates reported as "Needed" that that means either that update, or one that supersedes it is NOT installed yet.
So, does this mean that if I delete the superseded updates the clients reporting will eventually be precise?
Not necessarily. DECLINING the superseded updates merely removes the reporting of them as Needed (which is why the article explicitly states you should only decline superseded updates that are reported as 100% Installed/NotApplicable). A superseded update
reported as Needed means that the newer update is not yet installed -- possibly because it is not yet approved, or maybe not yet downloaded to the WSUS server. Whatever the reason, it's missing from the client and that's the condition that requires remediation.
You say that this means an update OR a superseded update is not installed yet...
If I approve 3 versions of the same update together i.e. Update 1a and 1b and 1c for all computers (1a is superseded by 1b, 1b is superseded by 1c):
1. Will only 1c be installed?
Yes. The WUAgent ignores superseded updates for purposes of download/install, but it still reports state on those updates, initially "Needed" (because they are not installed), or possibly "Installed" for any that are (and "Not Applicable" for the superseded
updates once the newer update has been installed).
Once the latest update (1c in your example) is installed, then 1a and 1b will be reported as "NotApplicable". If 1b were to be installed, 1a would be reported as Not Applicable, 1b as Installed, and 1c as Needed.
3. Will declining the superseded updates (1a and 1b) rectify the problem?
No. The problem is not that the superseded updates are still reported as "Needed" ... that's critically important evidence of the actual problem. The actual problem is that some other newer update is NOT installed, maybe not even approved (or maybe not yet
downloaded to the WSUS server after being approved).
why does it matter what percentage of machines have superseded updates installed when doing the filter
Because the fact that there IS a superseded update reported as "Needed" is a critial indicator that some other update (the one that supersedes the superseded update) is NOT installed, and that problem needs to be remediated. Once all of the current updates
are installed, then the superseded updates will be reported as "Not Applicable", and the 100% Installed/Not Applicable state is a Healthy Indicator ... and is what triggers the knowledge that declining the superseded updates is now an appropriate action to
take.