Welcome to the Microsoft Q&A Platform! Thank you for asking your question here.
Azure Update Manager uses WSUS to manage updates for both first-party and third-party applications. For third-party apps, you need to publish the updates to WSUS, which will then allow Azure Update Manager to detect and install them.
https://learn.microsoft.com/en-us/azure/update-manager/guidance-migration-azure
If you use Patch My PC to send third-party updates to WSUS, Azure Update Manager can use it. But without WSUS, Azure Update Manager can't manage or update third-party apps.
https://azure.microsoft.com/en-us/products/azure-update-management-center/
Right now, Azure Update Manager can't handle third-party patching without WSUS. So, you need a WSUS instance for complete patch management, including third-party apps.
If you have any further queries, do let us know.
If the answer is helpful, please and "Upvote it".