Microsoft has resolved the persistent issue affecting the 'Update and shut down' feature in Windows 11, specifically in Build 26200.7019.
Bug Resolution Details
Starting with Windows 11 Build 26200.7019 (or 26100.7019 for 24H2), Microsoft fixed a long-standing bug causing 'Update and shut down' to reboot instead of shutting down. This problem has persisted since the Windows 10 era.
- Issue: 'Update and shut down' led to reboots, not shutdowns.
 - Scope: Affected Windows 10 and early Windows 11 builds.
 - Fix released: Windows 11 Build 26200.7019.
 - Speculation: Possible cause is a race condition in the Servicing Stack.
 - Impact: Enhanced user experience with more reliable shutdowns.
 
Technical Explanation
The error stemmed from the system applying updates then returning to the login screen instead of powering off. Potential causes include a flawed Servicing Stack or timing conflicts with Fast Startup. This led to issues like drained laptop batteries.
Microsoft's ongoing effort to fix such bugs aims to enhance the Windows 11 experience by streamlining update procedures and ensuring smoother system operations.