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I couldn't find any article about this setting online too, but I don't think it will retry a failed update. I will try to do some tests to see if I can find what it do on the client that failed to install an update.
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After the way you tag questions on Q&A is updated, for any "Microsoft Configuration Manager" related problem, you can tag it with "Microsoft Intune", and then "Microsoft Configuration Manager" as the child tag.